EURUSD: Bearish below 1.0980
Yesterday’s signals were not triggered, as there was no bullish price action at either 1.1056 or 1.1036.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1036 or 1.1056.
Put 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 1.1056 or 1.1036.
Put 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 price seemed to have stabilized above 1.1000 again so we were essentially back where we had been a couple of days earlier. I wanted to avoid trading this pair as I saw the market’s focus as elsewhere.
The picture has changed as the price fell yesterday and broke quite cleanly below the two support levels I had identified above 1.1000.
The price at the time of writing looks heavy and seems likely to break the Asian session’s low and get established below the major psychological round number at 1.1000. These are bearish signs. Additionally, there is a long-term downwards trend, and no obvious support levels until 1.0865, although there is a previous bullish inflection point at about 1.0980 which could make its presence felt as support.
I would take a bearish bias if we get two consecutive hourly closes below 1.0980.
There is nothing of high importance due today concerning either the EUR or USD.