EURUSD: New 2-year low prices below 1.0961
Yesterday’s signals were not triggered, as there was no bullish price action at 1.0961.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0961 or 1.1030.
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 1.0865.
Place 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 it looked likely that we would see a further fall over the day, so I took a bearish bias on this currency pair. This was a good call as the price fell to another 18-month low price after breaking below the support level at 1.0961. This is now likely to have become new resistance.
These lows suggest that the edge remains on the short side with lower prices likely. However, the shorter-term charts are showing a bullish “V” at 1.0930 which may push the price up for a retest at 1.0961.
I would be prepared to take a bearish bias if we get a bearish rejection of 1.0961 which looks firm from 9am London time today.
There will probably be a dramatic Brexit vote in the British Parliament today which could impact the Euro significantly.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.