EUR/USD: Euro acting as safe haven?
Yesterday’s signals were not triggered as there was no clear price action rejection at either of the support and resistance levels which were reached.
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 1.0941, 1.0972, or 1.0993.
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 1.0875, 1.0830, 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 I thought that the resistance level at 1.0889 would be pivotal with this pair looking more bullish above that level, and more bearish below 1.0864.
This was a good call insofar as the price has continued to advance above 1.0889.
The technical picture is more bullish, with the price moving up steadily within a symmetrical bullish price channel. This suggests we are likely to see continued upwards price movement today despite the long-term bearish trend.
The USD is weaker on fears that a coronavirus pandemic may impact the global economy to the point where the Federal Reserve will be moved to cut rates again. Additionally, the Euro seems to be acting as a safe haven currency. So, market sentiment supports the technical picture.
I would take a long bias from a bounce at any key support level today.
There is nothing of high importance due today regarding either the EUR or the USD.