EURUSD: Consolidation between 1.1110 and 1.1198
Yesterday’s signals were not triggered, as none of the key levels were reached yet.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1198.
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 1.1110 or 1.1071.
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 Dollar was now in a long-term bearish trend so if the price here could get established above the 1.1200 area that would be a bullish sign.
I thought that 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, as I had no directional bias.
This was an OK call as the price really just went sideways over the past day, consolidating. It is roughly halfway between support at 1.1110 and resistance at 1.1198 with no real long-term or even medium-term trend.
Today is likely to be a quiet day in the market due to the absence of news, so I would again take the same approach to trading this consolidative price action: look for a long from a bounce at 1.1110 or a short from a bounce off 1.1198.
There is nothing of high importance due today regarding the EUR or the USD.