EURUSD: Resistance at 1.1093 looks pivotal
Yesterday’s signals were not triggered, as there was no bearish price action when any of the key resistance levels were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1093 or 1.1107 or 1.1140.
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 1.1056, 1.1043, 1.1039, 1.0993.
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 although we had seen a bullish bounce at 1.0993, I thought the bulls were faltering and had lost momentum. There I saw it as likely that the price would reach 1.0993 and the level will again be pivotal. I foresaw a bearish breakdown.
I was completely wrong: the price never got back to 1.0993 but took off in an upwards direction as the U.S. Dollar weakened against most major currencies.
The price broke through several resistance levels which are now likely to be support.
The most interesting and relevant feature technically now in this pair is the strong resistance level at 1.1093. The most high-probability trade would be a bearish failure at that level, followed by a bearish reversion to the mean, so I would be prepared to take a cautious and weak bearish bias following a rejection of 1.1093. Conversely, if the price can get established above that resistance level, it would be a bullish sign.
There is nothing of high importance due today concerning either the EUR or the USD.