EURUSD: Consolidation between 1.1131 and 1.1198
Yesterday’s signals were not triggered, as none of the key levels were reached.
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 1.1131, 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 yesterday that today was 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.
This was a good call as the price moved little over the day and both the levels held.
Action continues to be consolidative but as the USD has made a bit of a comeback this week, the price has got down towards the lower edge of its recent range suggesting it may be time to look for a long trade entry. Additionally, there are signs that we are seeing new support get established at 1.1131. If this continues to hold up as support until 10am London time I would take a cautious long bias, which would probably be best traded carefully on a short time frame.
If the price can get established above the key resistance at 1.1198, that would signify a long-term bullish breakout could be happening, and I would take a more bullish bias if that happens.
There is nothing of high importance due today regarding either the EUR or the USD.