EURUSD: More bullish above 1.1131
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 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 1.1169 or 1.1204.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1131, 1.1112, or 1.1083.
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 direction was hard to call, and our best tool was to see whether the resistance at 1.1129 held. I thought that a bullish sign would be clearer than a bearish sign there. This was a good call as the price has broken above this former resistance level as well as a bearish trend line (still shown within the price chart below) and is now looking more bullish and seeming to use 1.1130 as support.
Although the main story in the market now is an increase in risk-on sentiment, and strength in the USD, the Euro is also showing some strength.
The most likely scenario here looks like being a slow rise to 1.1169 today, but much will probably depend upon the U.S. inflation data which will be released later.
I take a cautiously bullish bias on this currency pair today above 1.1130 to 1.1169. There is no long-term trend to exploit so it is worthwhile being conservative about taking profit.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of CPI data at 1:30pm London time.