EURUSD: Bearish move halted by 1.1206
Last Thursday’s signals were not triggered as there was no bullish price action at 1.1271.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1271.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1206 or 1.1161.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
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 last Thursday that if the price could 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. I did not think it would happen that day anyway, and I was correct, with the breakdown arriving on Friday.
There is bearish momentum but the support at 1.1206 just above the round number has held up the price. It looks very likely to be today’s pivotal level. There has been quite firm movement in this pair so it may be worth trading it today depending upon when happens if and when the price reaches 1.1206, but I have no firm directional bias.
There is nothing of high importance due today regarding the EUR or the USD.