EURUSD: Bullish Above 1.1188
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 between 8am and 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 1.1244, 1.1279, or 1.1317.
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 1.1188 or 1.1144.
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 it was likely that today would be another up day, and that it was likely that the price would reach at least 1.1244 but would probably not break 1.1250. I was correct about everything except the price reaching 1.1244 which did not happen.
The fact that the day’s bullish move was not very strong, and that the price did not even reach 1.1244, indicates that the bullishness is weaker. However, the edge is still on the long side as we have another daily close at a long-term high suggesting a continuation of the recent bullish breakout, so traders are probably wise to keep looking for long trades from the time being. A bullish bounce at 1.1188 would be a perfect entry point. It is the last day of the year today and sometimes this session gives strong price movement.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.