EURUSD: Ranging from 1.1163 to 1.1244
Yesterday’s signals were not triggered as the price never quite reached 1.1244 yesterday.
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 1.1244, 1.1279, or 1.1317.
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.
Remove 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 Ideas
Go long following a bullish price action reversal immediately upon the next touch of 1.1163 or 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 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 the technical picture here was looking more bearish, as we seemed to be getting a key first lower high below the resistance at 1.1243, so it looked likely that the price would now drift downwards over the short-term.
We needed to see what happened when key resistance or support was next hit to get a better idea of probable direction, so I took no directional bias on this currency pair.
This was a good call as it at least anticipated the lack of direction. We have ranging conditions, with the price coming to within only a pip or so of the resistance at 1.1244 which was the high of the day.
I again take no directional bias and see the opportunity here as scalping rejections of either 1.1244 or 1.1163.
There is nothing of high importance due today concerning either the EUR or the USD.