Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 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 1.0968.
- 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 following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0926, 1.0888, or 1.0832.
- 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 as long as the support at 1.0919 held, I thought this would be a good entry point at a bullish bounce for a long trade. This wasn’t a great call, but it was OK as it was enough to keep out of trouble, as the price broke below 1.0919 without showing a bounce. For several days now the price here has really just been going sideways, as although the Dollar has been weak the Euro isn’t truly strong.
If the support at 1.0926 holds the price will be likely to rise again. We have seen the resistance at 1.0968 was strong enough to hold so that level could provide a good short trade again.
I am prepared to enter trades following bounces rejecting any key level, in any direction, but I would be conservative about taking profits. I have no directional bias today.
There is nothing of high importance due today concerning either the EUR or the USD.