EUR/USD: Price getting below double bottom at 1.1081
Yesterday’s signals were not triggered, as there was no bearish price action when 1.1110 was reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today only.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1100, 1.1120 or 1.1141.
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 1.1043, or 1.1039.
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 the technical picture still looked essentially bearish with a medium-term bearish trend line holding the price down and all resistance levels continuing to hold. However, it was hard for the price to get below 1.1083 and there was plenty of support leading down to the big round number at 1.1000.
This was a good call as the support at about 1.1083 held but is now showing signs of breaking down. There is certainly a medium-term bearish trend as can be seen in the price chart below from the second steepening bearish trend line.
If the price can start to make new daily lows from 9am London time, I would take a bearish bias down to 1.1043 which is the next key support level. There is likely to be support from there all the way down to the big round number at 1.1000 so bears need to be careful. I think it is very unlikely that the price will even reach 1.1000 today let alone get below it.
There is nothing of high importance due today concerning either the EUR or the USD.