EURUSD: Weakly bullish above 1.1018
Last Thursday’s signals were not triggered, as there was no bearish price action when 1.1024 was reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 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 1.1131.
Put 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 Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1018, 1.1001, or 1.0966.
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
We are seeing the continuation of a medium-term deep bullish retracement against a long-term bearish trend. Although the short-term movement is really in the British Pound, the increased prospect of a Brexit deal is also boosting the Euro, albeit weakly.
We can see the price has been struggling up in the price chart below, printing new higher support levels which look a little shaky, but they are all holding, and the line of least resistance is definitely upwards. For this reason, I take a cautiously bullish bias here above 1.1018 but I think the key pivotal level today will probably be the major psychological level and round number at 1.1000 so a long trade there off a firm bounce could be a great set-up.
There is nothing of high importance due today concerning either the EUR or the USD.