EURUSD: Ranging between 1.1182 and 1.1204
Yesterday’s signals were not triggered as the high was just a little way above the resistance level identified at 1.1202.
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 1.1204 or 1.1244.
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 Idea
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1128.
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 the price was likely to range over the day between 1.1128 and 1.1183 so trading reversals at either level for relatively conservative profit targets was likely to be the best approach. I was wrong as the price broke above 1.1183 which has now become new support. However, a ranging environment still prevails, with the price continuing to make narrower lower highs and higher lows.
The price is currently stuck between 1.1204 and 1.1182 and probably won’t move by much until the U.S. data release a couple of hours after the New York open. Therefore, a good strategy on this pair today will probably be to trade reversals from either of those levels and hope for a stronger movement in the same direction during the New York session.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.