EUR/USD: Range from 1.1000 to 1.1100
Yesterday’s signals were not triggered as the bullish price action at 1.1039 did not happen until after 5pm London time.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 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 1.1046 or 1.1100.
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 bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0993 or 1.0966.
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 if the price could get established below 1.1039 that would be a mildly bearish sign and the price would probably continue down to 1.1000 but I had no real directional bias.
This was a good call as the price did drift downwards.
The technical picture is a little more bearish today, although we are still well within a broader more long-term consolidation between 1.1000 and 1.1100. However, the support at 1.1039 has been invalidated and we have new lower resistance nearby at 1.1046, which suggests the price is likely to drift lower and retest the big round number at 1.1000 and maybe also the support level at 1.0993.
I would be prepared to take a long bias later if we get a strong bullish bounce at 1.1000 or 1.0993.
Regarding the EUR, the President of the ECB will be giving a speech at 12:15pm London time. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm and ISM Non-Manufacturing PMI data at 3pm.