EUR/USD: Key resistance at 1.0832
Last Thursday’s signals were not triggered, as there was no bullish price action when the support level identified at 1.0889 was reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0832 or 1.0895.
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 Idea
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0710.
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 last Thursday that I thought the the price would today move a bit lower to reach 1.0889 which should be a very pivotal point. I was correct about the price reaching that level but wrong about the level being pivotal as the price continued to fall strongly over the rest of the week and move lower.
We clearly have a medium-term bearish trend here with a relatively weak Euro, with the price retracing to a new resistance level at 1.0832 which it seems to be rejecting so far. There may be relatively little movement today due to it being Monday, but if this level at 1.0832 continues to hold as resistance, we are likely to see a renewed decline in the price, so I would take a short trade from a bearish bounce there.
There is nothing of high importance scheduled for today concerning either the EUR or the USD.