EURUSD: Weakly bullish with 1.1068 pivotal
Last Thursday’s signals were not triggered as the resistance level at 1.1107 was not reached before the London close.
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 1.1068, 1.1093, or 1.1113.
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, 1.1039, or 1.0993.
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 there were likely to be better opportunities elsewhere, but it seemed that today’s pivotal point here would be 1.1068, so as long as this level held the price was likely to continue upwards even if it did so slowly. I was correct on this over Thursday as the level was not tested, and the price continued to rise slowly. However, Friday saw a sharp fall to the support level at 1.1039 as the USD gained on the back of unexpectedly strong non-farm payrolls data.
The picture now is weakly bullish as the price has risen quite firmly from 1.1039. However, there is strong resistance at 1.1068 which continues upwards to about 1.1075, so a bearish reversal in this area is likely to show today’s pivotal point there and could produce a short trade for at least 20 pips or so of profit.
I would not look to take a bias on this pair today but 1.1068/75 can be used as an area to enter scalping trades or to measure bullishness or bearishness.
There is no real long-term trend now, the longer-term charts show price action is quite choppy and ranging in this currency pair.
There is nothing of high importance due today concerning either the EUR or the USD.