EURUSD: Bearish below 1.1092
Yesterday’s signals were not triggered as the support level at 1.1088 was not reached until after 5pm London time.
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 1.1092 or 1.1117 or 1.1163.
- 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 run.
Long Trade Idea
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1030.
- 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 there was a pivotal point at about 1.1090 and this was again likely to be the pivotal point of the day. If the price could get established below it, I was ready to take a bearish bias. This was a great call as this area was pivotal, and the break below it has caused a more sustained though still relatively small bearish move.
The Euro is one of the weakest major currencies and the strong U.S. Dollar was little affected by yesterday’s FOMC release which has not really moved price or sentiment on the greenback.
Therefore, there is good reason to take a bearish bias, even though it is probably worth being a little cautious as this downwards movement does seem to be slow.
I will take a bearish bias today if the price is making a new daily low below 1.1060 at 9am or 10am London time.
There is nothing of high importance due today concerning the USD. Regarding the EUR, there will be a release of French Flash Services PMI data at 8:15am London time, and German Flash Manufacturing PMI and Flash Services PMI 15 minutes later.