EURUSD: Weakly bearish but support @1.1128
Yesterday’s signals were not triggered as none of the key levels were reached yet.
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 1.1169 or 1.1204.
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, 1.1109, or 1.1083.
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 price was stuck between 1.1204 and 1.1182 and probably wouldn’t move by much until the U.S. data release a couple of hours after the New York open. I was right about the time of the movement. The price moved down as the USD strengthened after New York opened. The price of this pair was not greatly affected by the events in the Middle East, but the USD is maybe stronger as a kind of safe-haven currency.
The downwards movement is a little stronger today so it probably makes sense to look for short rather than long trades here today, although we already have a bullish double bottom at 1.1128 so that level may hold later.
There are likely to be better opportunities elsewhere in the market today.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time.