EUR/USD: More Bearish
Yesterday’s signals were not triggered as there was no bullish price action at 1.1065.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1056.
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 1.0950, 1.0918, 1.0907, or 1.0822.
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 the price seemed to be stabilizing despite the Eurozone’s status as the epicentre of the global coronavirus pandemic. So, I was looking to trade reversals in either direction from key levels.
This did not cause any losses, but the support at 1.1065 did not hold, due to the solid strength we are seeing now in the U.S. Dollar. The price broke down below that level before finding support just above the 1.0950 area which I saw as likely to be supportive.
It is worth noting that despite the great market panic worldwide, this pair is not moving very dramatically, and is still mostly respecting support and resistance levels.
I prefer to take short trades, but it should still be possible to take short-term long trades on shorter time frames from bounces at key support levels.
I would take a short trade today from a bearish bounce at 1.1056 if such a reversal following the bullish retracement to that price looks solid.
There is nothing of high importance scheduled today concerning either the EUR or the USD.