EURUSD: Choppy consolidation above 1.1000 area continues
Yesterday’s signals were not triggered, as there was no bullish price action at 1.1056.
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 1.1131 or 1.1162.
Place 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 1.0994.
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 huge psychological round number at 1.1000 was likely to remain as very strong support but 1.1056 looked at least a little unreliable. This was a good call.
Little has changed here technically – we continue to see a consolidation above 1.1000 with quite wide swings.
Bulls and bears are quite evenly balanced, so it seems the thing to watch out for is a directional breakout from this zone between 1.0994 and 1.1131 that holds for a few hours, to signal the next directional move.
In the meantime, I take no directional bias on this currency pair.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of Philly Fed Manufacturing Index data at 1:30pm London time.