EURUSD: Weakly bullish above 1.1121
Yesterday’s signals were not triggered, as none of the key levels were reached yet.
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 1.1121.
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 1.1107, 1.1063 or 1.1018.
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
I wrote yesterday that the price was now consolidating with little direction between 1.1121 and 1.1063. Fading either level following a good price action reversal could be OK for conservative profit targets. This was a good call as both the nearby support and resistance levels held over the day.
The price action is now more bullish as the price rose over the day and established a new higher support level just above the round number at 1.1100 and 1.1107.
The price is just under the resistance level at 1.1121 and if it can get established above that level, would have more room to rise. Therefore, I would take a weakly bullish bias if we get two consecutive hourly closes above that level during the first half of the London session, as there should be room to rise further with no obvious nearby key resistance below 1.1240 or so.
Remember there are some big US data items due later which could create a lot of volatility, so be careful with taking off risk before those items listed below.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be releases of ADP Non-Farm Employment Change data at 12:15pm London time, followed by Advance GDP at 12:30pm, and the FOMC Statement / Federal Funds Rate at 6pm then the usual press conference half an hour later.