EURUSD: Ranging between 1.1123 and 1.1183
Last Tuesday’s signals were not triggered, as none of the key levels were reached that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 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 1.1183, 1.1202, or 1.1244.
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 Idea
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1128.
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 last week that the edge was on the long side and over the short-term, that was correct.
Market sentiment has been disrupted and it is not where it was last week – there were strong trends against the U.S. Dollar which gave this pair a clear (bullish direction). However, markets are now in more risk-off mode and both the Dollar and the Euro now have a similar level of strength, meaning that we are not likely to see much directional movement here.
We have no valid long-term trend. The price is likely to range today between 1.1128 and 1.1183 so trading reversals at either level for relatively conservative profit targets is likely to be the best approach towards trading this pair.
There is nothing of high importance due today regarding either the EUR or the USD.