EURUSD: Bullish above 1.1128
Last Thursday’s signals were not triggered, as there was no bullish price action at 1.1152.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm 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 1.1198 or 1.1244.
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 1.1128 or 1.1107.
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 last Thursday that I would be happy to take a bullish bias from an upwards bounce at 1.1152, or if the New York close was higher than 1.1168. Neither of those scenarios played out, although the results were not far off.
The price has held up, and although the support level at 1.1152 has been invalidated, the support can just be adjusted down to 1.1128. The price is holding up and Friday’s New York close was very near to a new 50-day high closing price.
As there is no significant change to the technical picture, I will again look to take a bullish bias if either we get a bullish bounce during the day at 1.1128 or a price above 1.1168 at today’s New York close.
Although I am looking to the bullish side, as the price area just below 1.1200 is a long-term pivotal zone, there is also the possibility of a bearish reversal there starting a meaningful move down.
There is nothing of high importance due today concerning the USD. Regarding the EUR, the new President of the ECB will be giving a minor speech at 6:30pm London time.