EUR/USD: Strong resistance at 1.1204
Yesterday’s signals were not triggered as none of the key levels were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered prior to 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 1.1095 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 the day’s price movement looked likely to be very difficult to predict, the best I could say was that it was quite likely that the resistance at 1.1204 would hold and it did, so this was a good call.
The price has gone nowhere over the past day and is currently just consolidating below 1.1204. However, we have a very minor new bullish sign with the price printing a new higher resistance level at 1.1095.
I think that the resistance at 1.1204 is going to hold until we get NFP data from the U.S. tomorrow, and the price will continue to consolidate below that level in the meantime. This means that the best approach today is likely to be scalping bounces off any levels which are reached for conservative profit targets, especially the resistance at 1.1204 which looks strong.
There is nothing of high importance due today regarding either the EUR or the USD.