EURUSD: Choppy consolidation above 1.1000 area
Yesterday’s signals were not triggered, as there was no bearish price action at either 1.1036 or 1.1056.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 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 1.0994.
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 due to heavy price action and the long-term bearish trend, I would be ready to take a bearish bias if we had gotten two consecutive hourly closes below 1.0980. This was enough to keep out of trouble and my implication that the pivotal point was around 1.0980 was a good call.
The price has risen from the new obvious support level at 1.0994 which is very confluent with the huge psychological round number at 1.1000 so this is likely to remain as very strong support. The price action has also re-established support at 1.1056 but that level looks at least a little unreliable.
It seems we have a broader, choppy consolidation above the 1.1000 area.
I would stand aside from trading this pair for the time being as the price action is quite choppy without clear direction. There are likely to be better opportunities elsewhere.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time, followed by the FOMC Statement, Federal Funds Rate, and Projections at 7pm, followed by a press conference half an hour later.