EURUSD: Bearish consolidation between 1.1271 and 1.1317
Yesterday’s signals produced a long trade from the bullish rejection of 1.1271. The trade is now close to break even and looks doubtful so it might be wise to exit now.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1317 or 1.1359.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1271 or 1.1206.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
EUR/USD Analysis
I wrote yesterday that the price action was weakly bearish but the support level close by still looked firm, so the bigger picture was still a ranging price. Therefore, I thought the best approach on this pair would probably be scalping for conservative profit targets from bounces as either of the key levels. This was a perfect call as the price rejected a support level once, but this has only given about 12 pips of profit.
The picture is unchanged: weakly bearish but consolidative. If the price can get established below the support at 1.1271 it would be a bearish sign but the big number at 1.1250 might also be supportive. As New York is closed today, there will probably be very little price movement after about 2pm London time in any case, and any opportunities in the Forex market will probably be in other currency pairs anyway.
There is nothing of high importance due today regarding the EUR or the USD. It is a public holiday in the U.S.A.