EURUSD: Weakly bearish in a slow trend
Yesterday’s signals were not triggered, as the resistance level at 1.1099 was never quite reached, although it was only about 1 pip above the high of the day.
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 1 time frame immediately upon the next touch of 1.1097 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 action was quite choppy and a little slippery, but the overall weak bearish trend was persisting, 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 thought we would see lower prices but that bears really need to break below 1.1000 to get things moving seriously.
This was a good call as the level held, prices inched lower, but bears made little real progress.
There is no change at all to the technical picture, suggesting that again today prices are likely to slowly move down if they can stay below 1.1097. However, bears might worry that such slow movement and low volatility is suggesting that a major bullish reversal could take place soon.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.