EUR/USD: Trendless conditions
Yesterday’s signals were not triggered, as the price action at the support level of 1.1039 was insufficiently bullish.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 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 1.1100, 1.1119 or 1.1141.
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 bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1039 or 1.0993.
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 there was an absence of any trend here, so the best approach was likely to be trading reversals from key levels. I thought that a short trade from 1.1100 would probably be the day’s best opportunity.
This was a good call as although 1.1100 was never reached, the price moved down over the day, reaching the support level at 1.1039 and bouncing, but it hasn’t moved up much from there and is now falling again.
There is an absence of any trend in this pair, but the Dollar looks a bit stronger than the Euro.
If the price can get established below 1.1039 that would be a mildly bearish sign and the price would probably continue down to 1.1000 or the support at 1.0993 which might be a more interesting support level for a long trade.
I have no real directional bias today and see other currency pairs such as GBP/USD as likely to be more interesting.
There is nothing of high importance due today regarding either the EUR or the USD.