EURUSD: Bottoming out at 1.1018
Last Thursday’s signals were not triggered as there was no bearish action when the price reached 1.1063 and unfortunately the high was just a pip short of the key resistance at 1.1093.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 1pm London time today.
Short Trade Ideas
· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1056, 1.1093 or 1.1107.
· 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, 1.0993 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
I wrote yesterday that I was ready to take wither a short from 1.1063 or a long from 1.1018 if we had seen reversal action when either level was touched.
This was enough to keep out of trouble, but the real opportunity was a short from just below 1.1093 as the Dollar continued its advance.
The price has now come to rest at the support at 1.1018 just above the very big psychological level at 1.1000. It looks like it is bottoming out and we are seeing the same technical situation in the GBP/USD currency pair which suggests that the support is going to hold for the day.
It should be a quiet day, so the best opportunity is likely to be scalping long trades off 1.1018.
There is nothing of high importance due today regarding the EUR. It is a public holiday today in the USA.