EUR/USD: New 2.5-year low price
Last Thursday’s signals were not triggered as there was insufficiently bearish price action at any of the identified support levels which were reached.
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 1.0815.
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 1.0639, 1.0615, 1.0572, 1.0561.
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 was broadly bearish, and I expected the Euro to eventually break down further, so I would be very happy to take a short trade from a bearish reversal at 1.0960 if this set up.
This was a good call, as the price fell over that day, and ended last week at a new 2.5-year low price.
The Eurozone is the epicentre of the global coronavirus pandemic, which is not helping the Euro, but the major story is the strength of the U.S. Dollar which is rising again everything, even safe havens such as Gold and the Swiss Franc.
For these reasons, I maintain a bearish outlook, and I expect to see the price of this currency pair move lower over the coming days. However, it is true the trend is relatively slow moving, so selling on rallies is likely to be the best approach.
I will take a bearish bias today if we get a bearish reversal following a bullish retracement to 1.0815. There is probably also resistance at 1.0750.
There is nothing of high importance scheduled today concerning either the EUR or the USD.