EURUSD: Strong resistance likely at 1.1110
Last Thursday’s signals were not triggered, as there was insufficiently bullish price action when the support level identified at 1.1110 was first reached.
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 1.1091, 1.1110, or 1.1144.
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 1.1043 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 last Thursday that the best trade set-up today would probably be a long following a bullish bounce from 1.1110. There was some bounce here, but it wasn’t strong enough to justify an entry, so this call was at least enough to keep out of trouble.
The U.S. Dollar managed to strengthen last week against its bearish trend, which has pulled the price here down with the new resistance level at 1.1110 looking strong. A short trade after a retracement back to this level (1.1110) and a bearish rejection could be interesting. Beyond that, there is no long-term trend or good momentum, so I do not see any other opportunity here in this currency pair today.
There is nothing of high importance due today regarding either the EUR or the USD.