EURUSD: Weakly bearish below 1.1096
Last Tuesday’s signals were not triggered, as there was insufficiently bearish price action at 1.1091.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 1pm and 9pm 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 1.1096, 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 Tuesday that a short trade at 1.1091 would probably be the best bet for that day, with volatility likely to be low and trading thin. This was a good call as there was little movement and the price was unable to get established above the resistance at 1.1091 although overall, there was little movement.
I have readjusted this resistance level up a little way to 1.1096, but there is no significant change to the technical picture. The Euro is weakly bearish and should stay that way if it keeps below the resistance level at 1.1110. However, trading in this currency pair is likely to be thin today so again, short scalps from these two resistance levels nearby are likely to be the best opportunities that might arise.
There is nothing of high importance due today regarding either the EUR or the USD. It is a public holiday in the U.K., Germany, and France.