EURUSD: Bullish from support at 1.1110
Last Thursday’s signals produced a profitable short trade from the bearish inside candlestick breakdown from the resistance level at 1.1198. It would be wise to exit from any remainder of that trade which might be held still.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1198.
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 1.1110 or 1.1071.
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 traders should be cautious today, especially around the time of the ECB release and the British exit poll at the end of the day. Yet I did see the best potential here as in taking a bullish bias on this pair until the 1.1200 area was reached. This was a great call as this is exactly what happened: the price rose to reach the resistance at 1.1198 before falling again.
The price found support at 1.1110 from where it has been rising firmly over recent hours. The U.S. Dollar is weak, meaning it makes sense to take a bullish bias on this currency pair. The problem is that the Euro is not a very strong currency right now and the price is still within its long-term range below 1.1200. The Dollar is now in a long-term bearish trend so if the price here can get established above the 1.1200 area that would be a bullish sign.
I think either a long trade at a bullish bounce at 1.1110 or a short trade from a firm bearish bounce at 1.1198 would be good potential opportunities here today if either were to set up.
Regarding the EUR, there will be a release of French Flash Services PMI at 8:15am London time, followed by German Flash Manufacturing & Services PMI at 8:30am. Concerning the USD, there will be a release of Flash Manufacturing PMI data at 2:45pm.