EUR/USD: Pivotal Point @1.0814
Last Tuesday’s signals were not triggered, as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Idea
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0923.
- 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 1.0840 or 1.0814.
- 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.
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 the best approach to trading this pair today was likely to be using 1.0814 as a pivotal point, especially if it continued to act supportively. This was a relatively good call as although the level was never hit, the price did hold up above that level which indicated a further advance to new higher prices.
The technical picture has become more bullish, with new higher support being printed at 1.0840 and some short-term bullish momentum showing.
The Euro is nor one of the strongest currencies, in fact it is relatively weak, but we are beginning to see a persistent trend over recent days towards a weaker USD everywhere.
Today’s action in this currency pair is relatively unpredictable as the European Central Bank will be giving its monthly policy release later today. The best approach may be to fade any spike which occurs here just after that release as it touches any key support or resistance level, if it bounces off it.
Concerning the EUR, the ECB will release its Monetary Policy Statement and Main Refinancing Rate at 12:45pm London time, followed 45 minutes later by the usual press conference. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm.