EUR/USD: Bullish consolidation
Last Thursday’s signals produced a long trade from 1.1218 which was stopped out at break even.
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 1.1251 or 1.1381.
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 1.1065, 1.0950, or 109.18.
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 as long as the support at 1.1250 held up, we were likely to see the price consolidate between 1.1250 and 1.1381. This was a good call as once the support at 1.1250 broke down, the action turned more strongly bearish, so I was correct in identifying a pivotal point at 1.1250.
Markets are obviously in crisis mode due to the coronavirus pandemic causing havoc in financial markets with central banks now being forced to take emergency measures. The Eurozone is now the epicentre of the pandemic. However, despite these factors and generally high market volatility, it seems that the price has found relatively solid support at 1.1065 and is now in a bullish consolidation between 1.1065 and 1.1250.
I think the best approach today will be to trade any reversals at either 1.1250 or 1.1065 and to then monitor any trades on short time frames to stay nimble and take profits before the high volatility causes a major turn in the price.
I have no directional bias as long as the price stays above these levels but would be more bullish if the price can get established above 1.1250.
There is nothing of high importance scheduled for today regarding either the USD or the EUR.