EUR/USD: Euro acting as safe haven
Yesterday’s signals were not triggered, as there was no bearish price action at either 1.1100 or 1.1119.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1204, 1.1244, or 1.1279.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1119 or 1.1066.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
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 it seemed there was every reason to expect the price to continue to rise here, although in the absence of any long-term trend, the price would most likely run into strong resistance fairly soon. I thought the price would make at least 1.1100 yesterday.
This was a good call on the direction, with the price rising strongly all day to exceed 1.1100 by 83 pips. The Euro is one of the strongest major currencies right now.
The signs are bullish, but the price has made a long journey to get to this area near 1.1200 which has acted as resistance for a long time, so this pair may be due a bearish pullback today. If the price holds up above 1.1119 it would be a very bullish sign, but otherwise, 1.1066 would be likely to be today’s pivotal point.
I would be prepared to take short-term long trades today on small time frames from bullish bounces at resistance levels.
There is nothing of high importance due today regarding either the EUR or the USD.