Persistent buying below 1.0800
Yesterday’s signals were not triggered, as none of the key support and resistance levels identified have been reached yet.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0887 or 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 Idea
- Long entry 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 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 wanted to stand aside and wait for the price to retrace and fail at the nearest resistance level at 1.0887 before taking a short trade.
This was a good call, as the price has risen to almost reach this level but has not quite reached it yet. So, this was not directly useful yet, but it was on the right track.
The technical picture is a little more bullish, as although we see a long-term bearish trend, the price keeps getting bought firmly every time it dips below 1.0800, refusing to fall meaningfully below that round number. Another bullish factor is that the chart suggests we might be seeing the beginning of new higher support at about 1.0837.
I am still be prepared to take a short trade from a bearish reversal at 1.0887, but a break above that level would suggest that the price would be most likely to continue upwards to reach 1.0923.
There is nothing of high importance due today concerning the EUR. Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 2pm London time.