EURUSD: Bearish over the medium term
Yesterday’s signals were not triggered, as none of the key levels were reached.
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 1.1039, 1.1056, 1.1093 or 1.1107.
⦁ 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 1.1018, 1.0993 or 1.0966.
⦁ 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 it should be a quiet day, so the best opportunity was likely to be scalping long trades off 1.1018. Unfortunately, that level was never hit, but it did turn out to be a quiet day.
The price rose a little yesterday but peaked at a pivotal point acting as new resistance at 1.1039. This suggests that there should be a breakout of this very narrow range today as the U.S. is back from holiday. It would make sense to be more bullish above 1.1039 and more bearish below 1.1018 or perhaps 1.0993 would be even better, but there are likely to be better trading opportunities in the other major currency pairs today such as USD/JPY and GBP/USD.
There is nothing of high importance due today regarding either the EUR or the USD.