Yesterday’s signals were not triggered as none of the key levels were reached during the London session.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today.
Short Trade Ideas
- Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.0888, 1.0919, or 1.0968.
- 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 followiof the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
- ng a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.0832 or 1.0710.
- 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%
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 support level at 1.0832 was likely to be pivotal now, but the bigger opportunity would arise on the short side if the price could break convincingly below 1.0832 as it could then fall to at least 1.0750.
I think this was a correct call but in the end the price never even reached 1.0832 so it was not very useful.
We see the price now consolidating above 1.0832 so this level is looking strong as support, while the bearish momentum has cooled off. I see the next likely short-term movement technically as being upwards although the resistance level at 1.0919 does look very strong.
I think the price would be likely to respect both 1.0832 and 1.0919 today, but we have the European Central Bank’s monthly monetary policy input, so the price is likely to jump around on high volatility. Spikes to 1.0832 or 1.0919 might still be traded profitably around the time of the release of you look for reversals from such levels on very short time frames such as the 5-minute chart.
Concerning the EUR, there will be a release of the ECB’s Monetary Policy Meeting Accounts at 12:30pm London time. Regarding the USD, there will be a release of Unemployment Claims at 1:30pm.