EURUSD: Bullish on weak Dollar and Brexit
Last Thursday’s signals could have given a losing short trade following the bearish inside candle breakdown from the initial rejection of the resistance level identified at 1.1131.
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 1.1198, 1.1244, or 1.1279.
Place 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 Ideas
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1135 or 1.1063.
Place 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 it would be hard to find a good opportunity in this pair today with the exception of a spike down to 1.1018 or a spike up to 1.1131, either of which could be faded. I was wrong, as the resistant area at 1.1131 was broken to the upside after holding for a brief while, and we have seen a continued advance in the Euro while the U.S. Dollar has been very weak and remains weak. This suggests a bullish outlook; however, the real action is in the British Pound which is even more bullish. There are probably going to be further opportunities for profitable long trades in this currency pair and in the GBP/USD currency pair as the outlines of a relatively soft Brexit deal begin to take shape, and as the USD seems to be beginning a new long-term bearish trend.
Today’s pivotal point looks likely to be 1.1135 and I would take a bullish bias if we get a firm bullish bounce here during the early part of the London session today.
There is nothing of high importance due today concerning either the EUR or the USD.