EURUSD: Weakly bullish above 1.1064
Yesterday’s signals were not triggered, as although the support level at 1.1056 marked the low of the day almost to the pip, the bullish price action was too slow to develop there to provide an entry signal.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 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 1.1093, 1.1106, or 1.1140.
⦁ 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 1.1064, 1.1056, 1.1043, 1.1039, or 1.1018.
⦁ 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 the price was looking more bullish, having established new support above 1.1018. The British Pound was strong right now and this was dragging up the Euro along with it, while the U.S. Dollar traded as one of the weaker major currencies. I took a weakly bullish bias on this currency pair above 1.1056, and this turned out to be a good call as the price rose over the day and is now higher than 1.1056.
The technical picture is a little more bullish still, as we have a new higher support level at 1.1064 which has formed just a few pips above the support level below it. Broadly, the Pound and Euro are strong, but the Pound is stronger.
It will be a quiet day in the Forex market in the absence of any major news releases, so the anticipated price rise may be relatively slow. Therefore, I would look to take a bullish bias following a bearish retracement to any of the support levels which produce an immediate bullish bounce.
There is nothing of high importance due today concerning either the EUR or the USD.