EUR/USD: Round number at 1.1000 breaking down
Yesterday’s signals were not triggered, as there was no bullish price action when the support level identified at 1.1020 was reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1056.
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 bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0993 or 1.0889.
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 the picture was mildly bullish and would continue to be so as long as the price could hold up above 1.1020. I was wrong, and this level really provided no support in the end.
The technical picture is now more bearish with the round number at 1.1000 breaking down, but weakly so.
The Forex market is much quieter and is consolidating with no trends except on very short time frames, making this a challenging market to trade.
It might be possible to scalp bounces at key levels, but it is probably a good idea to stand aside from trading this pair until the markets get more direction.
There is nothing of high importance scheduled for today concerning either the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.