EUR/USD: Pivotal point at 1.0842
Yesterday’s signals were not triggered, as the bearish price action took place above 1.0865.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 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 1.0889, 1.0904, or 1.0941.
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
Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0842 or 1.0814.
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 currently sitting on 1.0814 which I saw as a pivotal point and new support level: if this level held up going into the London session, we would be more likely to see an up day. This was a good call, as the level held up and we did see a rise over the day.
The price action has invalidated the former resistance level at 1.0865 and printed a new higher support level at 1.0842. These are bullish signs. However, the long-term trend is bearish, and the short-term price action at the time of writing is also bearish. Therefore, the most I can say is that it looks as if 1.0842 will be pivotal today.
Markets are relatively volatile and prone to sudden waves of risk-off sentiment about coronavirus developments; therefore, price predictions are challenging at present. This currency pair is not a major focus of the market right now either.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.