EURUSD: Consolidation likely between 1.1117 and 1.1162
Last Thursday’s signals were not triggered, as there was no bearish price action at 1.1092.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1163 or 1.1198.
- 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.
- Remove50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Idea
- Long entry following a bullish price action reversalon the H1 time frame immediately upon the next touch of 1.1117.
- 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 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 there was good reason to take a bearish bias, even though it was probably worth being a little cautious as this downwards movement seemed to be slow.
I was ready to take a bearish bias if the price was making a new daily low below 1.1060 at 9am or 10am London time. Although the price moved down over the day, it rose sharply on Friday and is now much less bearish, so this approach was at least enough to stay out of trouble.
The Euro has been boosted by flow into safe haven assets as the U.S. / China trade dispute intensified. This has sent the price firmly back up above former resistance at 1.1117 which is now likely to be support.
The price is likely to consolidate today between 1.1117 as support and 1.1163 as resistance.
There is nothing of high importance due today concerning the EUR. Regardingthe USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.