EUR/USD: No long or medium-term trend
Last Thursday’s signals were not triggered as the resistance level at 1.1039 was not hit until after London closed.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1100, 1.1119 or 1.1141.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1039.
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 last Thursday that I thought the price would fall again to retest the 1.1000 area but also that if the price could get established above 1.1039, I was ready to take a weakly bullish bias.
The price rose to test 1.1039 which initially held, but the price was then able to get established later above 1.1039 from where it rose further.
The resistance at 1.1100 seems to be pivotal, and has held so far, with the price consolidating below it now.
There is an absence of any trend here, so the best approach is likely to be trading reversals from key levels. A short trade from 1.1100 would probably be today’s best opportunity.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.