EURUSD: Consolidation above 1.1021
Yesterday’s signals were not triggered, as none of the key levels have been reached yet.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today only.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1097 or 1.1162.
Place 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 1.1021 or 1.0959.
Place 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 that the price has continued to hold up above both 1.1000 and the support level at 1.1021. Despite this mild bullish sign, it was difficult to see the price getting above the 1.1050 to 1.1100 area which is strong pivotal resistance. For this reason, plus the long-term bearish trend in this currency pair, I was still looking to the short side, but waiting for the price to get established below 1.1000 before taking a bearish bias.
The picture now seems to have become more bullish, as the price is holding up and the key support level at 1.1021 was not even touched. If this level continues to hold, we should see another test of the area of long-term pivotal resistance from about 1.1060 to 1.1097 – but this is quite likely to hold also, so longer-term direction remains uncertain.
I see both support and resistance levels as likely to hold today.
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.