EURUSD: Bullish above 1.1152
Yesterday’s signals produced a profitable short trade from 1.1121 and could have produced a profitable long trade from the support at 1.1107 after the FOMC release as well.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1198 or 1.1244.
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 1.1152 or 1.1107.
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 yesterday that I would take a weakly bullish bias if we get two consecutive hourly closes above 1.1121 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.
This did not happen, and the FOMC release later weakened the Dollar with a slightly hawkish statement, with the Euro acting as one of the strongest currencies.
The outlook is much more bullish now, with new higher resistance at 1.1152. The price will make a new 50-day high close if it ends the New York session above 1.1168. This would be a very bullish sign.
I would be happy to take a bullish bias today from an upwards bounce at 1.1152, or if the New York close is higher than 1.1168.
There is nothing of high importance due today concerning either the EUR or the USD.