EURUSD: New 2-year low prices below 1.1000
Last Thursday’s signals were not triggered as none of the key levels were reached that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1030.
Put 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 1.0961.
Put 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 prices were likely to slowly move down if they could stay below 1.1097. However, bears might worry that such slow movement and low volatility was suggesting that a major bullish reversal could take place soon. This was a good call as the price fell over the course of the day, before falling more strongly on Friday.
Friday saw a very strong downwards move on above-average volatility, with the price reaching a new 2-year low. It looks likely that we will see a further fall today, so I take a bearish bias on this currency pair while noting that the U.S. is on holiday today, so it is the first half of the London session which will be the most significant time today.
There is nothing of high importance due today concerning the EUR or the USD. It is a public holiday in the U.S.A. today.