EURUSD: Supported above 1.1000
Last Thursday’s signals were not triggered, as there was no bearish price action at 1.1016.
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 1.1131 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 1.1056 or 1.1036.
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 last Thursday that if the bears could get the price established below 1.1000, that would be a bearish sign. I was ready to take a bearish bias if we had got two consecutive hourly closes below 1.0985. Unfortunately, that worked out badly, as the ECB release initially pushed the price down below 1.0965 before it rebounded strongly.
The ECB reinstated QE but essentially did not cut the interest rate, so their guidance was simultaneously bullish and bearish, causing a sharp swing with high volatility.
The price seems to have stabilized above 1.1000 again so we are essentially back where we were.
I am inclined to avoid trading this pair as the action is definitely elsewhere, with increased risk-off sentiment boosting more traditional safe havens.
There is nothing of high importance due today concerning either the EUR or USD.