EUR/USD: Resistance at 1.1100 looks pivotal
Yesterday’s signals were not triggered, as none of the key levels were reached that day.
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 1.1100, 1.1120 or 1.1141.
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 or 1.1039.
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 if the price could start to make new daily lows from 9am London time, I would take a bearish bias down to 1.1043 which was the next key support level. This was an OK call, as the price did, barely, break to new lows, and although the price has not moved much, the action still looks bearish, with the price holding below the nearest key support level which I have identified at 1.1100.
The technical picture is weakly bearish on very low volatility. However, that could change very soon as the ECB will be giving its monthly policy release. This creates an unpredictable situation, but the most potential would be on the short side if the ECB say anything more dovish than the market is expecting, so I would favour short trades.
Concerning the EUR, the ECB will release its Main Refinancing Rate and Monetary Policy Statement at 12:45pm followed by the usual press conference half an hour later. There is nothing of high importance due today regarding the USD.