EUR/USD: Medium/Long-term bottom at 1.0639
Yesterday’s signals produced a break-even long trade from the support at 1.0815.
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 1.0881 or 1.0960.
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 1.0710, 1.0639, or 1.0615.
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 situation now looked weakly bullish, but it was far too early to say we are not going to see further strong movements down to new lows. Therefore, I would wait out this retracement and look for a short trade from a bearish reversal at 1.0960 if it set up later today.
This was enough to keep out of trouble, but the move has been a little more bullish than I expected.
The USD has sold off in recent hours as riskier assets advance on the news of a huge $2 trillion rescue package being approved in the U.S. and this has helped hold up the price here.
I expect that the price will continue to advance here over the coming hours, but the resistance level at 1.0881 could be very pivotal so I would be prepared to take a short trade following a bearish reversal there if it sets up.
There is nothing of high importance scheduled for today concerning either the EUR or the USD.