EURUSD: Pivotal resistance at 1.1063
Yesterday’s signals were not triggered, as none of the key levels were reached within the specified time.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1063, 1.1093, 1.1107 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 1.1018 or 1.0993.
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 1.1063 was very likely to be the day’s pivotal point, and that as there was no long-term trend, so trading reversals at key levels following strong price movements was likely to be best strategy to use with this pair over the day.
I was correct about 1.1063 being the pivotal point. We now see this level acting as resistance following the price getting established below it.
The technical picture is more bearish now, with a risk-off sentiment in the market which is boosting the USD and causing the EUR to weaken, although the EUR is not the weakest currency now.
Short and medium-term price action suggests a continuing move down, but the EU forecasts being released today could cause unpredictable movement if they contain any surprises.
I would be prepared to take a short from 1.1063 or a long from 1.1018 today if we see reversal action when either level is touched.
Concerning the EUR, there will be a release of EU Economic Forecasts at 10am London time. There is nothing of high importance due today regarding the USD.