EURUSD: Bulls held by strong resistance at 1.1035
Yesterday’s signals were not triggered as the key level at 1.1030 was not hit until after the end of the London session.
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 1.1035 or 1.1097.
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 1.0959.
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 the previous day saw a daily pin bar candlestick form, suggesting a bullish reversal, or at least a significant bullish retracement into the long-term bearish trend, was on the cards, with the price seeming to have gotten established above the support level at 1.0959.
I was ready to take a bearish bias if we get a further retracement to 1.1030 which then failed and made a bearish price action reversal.
This was a good call as it reflects what has happened in this currency pair over the past 24 hours – the bearish reversal at about 1.1030 just took too long to happen to be useful.
It looks as if the price is naturally going to move down from this rejection of the resistance at 1.1035, but both the Euro and the British Pound are having movements determined largely by political factors over Brexit which are very unpredictable. Any such events can make technical analysis quite irrelevant, but technically, the action suggests that we will see lower prices today.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 4pm.