EURUSD: Weakly bearish
Yesterday’s signals were not triggered, as the bearish price action took place a little way above the resistance level at 1.1111.
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 1.1099.
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.
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
Long entry 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.
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.
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 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. I saw the day’s pivotal point at 1.1111 and thought that the price looked broadly bearish as long as it stayed below that.
This was a pretty good call as it was very close to the day’s high price, which was just a few pips above 1.1111.
The action is quite choppy and a little slippery, but the overall weak bearish trend persists, with the pivotal point now seeming to have moved down to just a couple of pips below the nearby round number, at 1.1098.
I think we will see lower prices here today, but I think long-term bears should really be waiting to see the big psychological round number area at 1.1000 break down first before being more confident that there is a big movement coming.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.