EURUSD: Weakly bullish from 1.1110
Yesterday’s signals were not triggered as there was insufficiently bullish price action at either 1.1131 or 1.1110, although the low of the day was made at 1.1110 to the pip.
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 there were signs that we were seeing new support get established at 1.1131. If this continued 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.
This was not a good call as despite holding up initially, the support at 1.1131 finally broke down. However, the level below that which was better established, at 1.1110, has held to the pip.
The price remains within its consolidation area between 1.1198 (the upper edge of its long-term price range) and 1.1110. This suggests the best trade now would be long as the price will probably move up from here. However, I would prefer to wait until the price gets established above 1.1198 to get truly bullish as that will be a major long-term bullish breakout.
The best trade set-up today would probably be a long following a bullish bounce from 1.1110.
There is nothing of high importance due today regarding either the EUR or the USD.