EUR/USD: Heading for support at 1.0933
Yesterday’s signals were not triggered as none of the key levels were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1056.
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 1.0933 or 1.0889.
Put the stop loss 1 pip below the local swing low.
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 it was probably a good idea to stand aside from trading this pair until the markets got more direction. I was on the right track with this as the market just consolidated.
The market has come to life a bit more today as the USD begins to show some strength and stock markets in the USA look more bearish as President Trump is now making it clear that the next few weeks are going to be hard in the USA as the coronavirus is likely to cause as many as 240,000 deaths nationwide. There had been a lot of denial in the U.S.A. at the seriousness of the outbreak which now seems to be increasing more quickly in the U.S.A. than in any other country, especially in New York City.
Technically the price is still within a long and medium-term consolidation zone and pattern here, but we are beginning to see bearish momentum. If the price can get established below 1.0889 later that would be a very bearish sign and suggest a further meaningful drop in the price would be likely.
There is nothing of high importance scheduled for today concerning either the EUR. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Manufacturing PMI numbers at 3pm.