EURUSD: Bearish move halted by 1.1206
Yesterday’s signals were not triggered, as the price never quite reached the support level identified at 1.1206.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1271.
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 1.1206 or 1.1161.
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 support at 1.1206 just above the round number looked very likely to be the day’s pivotal level. I had no firm directional bias. The price got very close to this level which has continued to hold. We are very likely to get a test of it at some point today so it should be the day’s pivotal point. It is tempting to take a bearish bias if that level breaks down due to the widespread strength of the U.S Dollar, but this pair is well within its long-term range and therefore could turn around quite easily. Probably the highest-probability trade setup which might occur in this pair today would be some long pips from a bullish bounce at 1.1206.
There is nothing of high importance due today regarding the EUR. Concerning the USD, the Chair of the Federal Reserve will be making a minor speech at 1:45pm London time.