EURUSD: More bearish below 1.1111
Yesterday’s signals were not triggered as the bullish price action took place a little way below the support level identified at 1.1117.
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 1.1111 or 1.1162.
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.
Remove 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 Idea
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1030.
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.
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 yesterday that the Euro had been boosted by flow into safe haven assets as the U.S. / China trade dispute intensified. This had sent the price firmly back up above former resistance at 1.1117 which was now likely to become support. I thought that the price was likely to consolidate between 1.1117 as support and 1.1163 as resistance.
I was wrong as the price was able to break back below 1.1117 quite quickly, showing that the Euro is really not benefitting from safe haven flow. There is a long-term bearish trend, albeit a slow one, which continues to drive prices back down in this pair every time they rally.
We can draw the pivotal point at 1.1111 so the price looks broadly bearish as long as it stays below that. It is the psychologically crucial 1.1000 area which bears really need to break down to make a significant advance.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.