EUR/USD: Today’s pivotal point at 1.1020
Last Thursday’s signals were not triggered, as there was no bearish price action when the resistance level identified at 1.0960 was 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 1.1250.
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 1.1020, 1.0993, or 1.0889.
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 thought the price was likely to rise gently over the short-term, but the resistant area around 1.0960 looked strong and would be a hard test for bulls. If the price could get established above that level it would be a bullish sign.
This was a good call insofar as the price breaking above the 1.0960 level was a bullish sign. We have seen the price continue to rise from there and get well established above the big round number at 1.1000. The Euro continues to be one of the stronger currencies, while the U.S. Dollar has continued to decline or at least stabilize over recent days.
Technically, the picture is mildly bullish, and will continue to be so as long as the price can hold up above 1.1020. I would be prepared to take a long trade / long bias today if we get a bullish bounce following a retracement to 1.1020.
There is nothing of high importance scheduled for today concerning either the EUR or the USD.