EUR/USD: Pivotal point at 1.0889
Yesterday’s signals were not triggered as unfortunately the bullish price action took place a little way below the support level identified at 1.0842.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 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 1.0889, 1.0904, or 1.0941.
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
Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0864, 1.0830, or 1.0814.
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 there were both bullish and bearish signs, so the most I felt able to say was that it looked as if 1.0842 would be pivotal. I was wrong. We have actually seen a weak but real short-term bullish trend here due to the USD weakening somewhat on an increasing feeling that the coronavirus situation might cause the U.S. economy to cool down which might strengthen the case for a rate cut from the Federal Reserve.
I think that the resistance level at 1.0889 will be pivotal today. This pair would look more bullish above that level, and more bearish below 1.0864.
There is nothing of high importance due today regarding either the EUR or the USD.