EUR/USD: Pivotal Point @1.0814
Yesterday’s signals were not triggered, as neither of the key levels given were reached yesterday.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Idea
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0923.
- 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 1.0814 or 1.0710.
- 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.
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 I thought that the price action looked quite unpredictable, with a weak medium-term bearish trend and quite uncertain-looking support at 1.0814. So, I preferred to avoid trading this pair for the time being. I think this was a good call as the price has not moved much here. We are also beginning to see signs now that this support level at 1.0814 may be breaking down. However, if it does hold up as we go into the London session and we see some firm bullish price action, this should be more significant technically and suggests an up day.
The best approach to trading this pair today is likely to be using 1.0814 as a pivotal point, especially if it continues to act supportively.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.