EUR/USD: Support level at 1.0993 looks pivotal
Yesterday’s signals were not triggered as the bullish price action at 1.0993 was insufficiently bullish to trigger a long trade entry.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today.
Short Trade Idea
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1039.
- 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 1.0993, 1.0966 or 1.0941.
- 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 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 I thought that the support at 1.10993 was going to be pivotal today, and I would take a bearish bias if we had gotten two consecutive hourly closes below it.
This was an excellent call as it was clearly the pivotal point of the day, with the level holding almost to the pip.
The picture is still bearish over the medium term, and the price still looks likely to test the 1.1000 area and the precise support level at 1.0993 again. If it can get established below 1.0993 with a couple of consecutive hourly closes, I would take a bearish bias. If alternatively the price can get established above 1.1039, I would take a weakly bullish bias.
A daily close below 1.1000 will take us into a 50-day breakout territory. The Euro is the weakest major currency against the U.S. Dollar over the long-term.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of Advance GDP data at 1:30pm London time.