EURUSD: Consolidating below 1.1113
Yesterday’s signals may have produced a losing short trade from the hourly bearish pin bar rejecting the resistance level identified at 1.1093. However, I did say I did not want to trade this pair yesterday.
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 1.1113 or 1.1140.
- 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 1.1071, 1.1043, or 1.1039.
- 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 the situation looked a little more bearish and the short-term momentum was slightly bearish so we may see a move down to the 1.1050 or below, where the support levels were likely to hold today.
I was wrong, though I noted there was no trend and said that I would avoid trading this pair for now.
The price actually moved up to break and invalidate nearby resistance but is now falling again.
There is very important U.S. data due today which could change the technical picture, so it will probably be wise not to trade or make any serious analysis until the New York session gets underway. Markets have been quiet for a few days, but we could see some bigger price movement here later. Added to the mix is the British general election tomorrow which is likely to produce a lot of movement in the Pound which will probably also impact the Euro.
The most that can be said right now is that the resistance level at 1.1113 looks strong. I do not have much confidence that the support level at 1.1071 will have much effect if it is reached.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time and the FOMC Economic Projections, FOMC Statement, and Federal Funds Rate at 7pm plus the usual press conference half an hour later.