EUR/USD: Persistent buying below 1.0800
Last Thursday’s signals were not triggered as none of the key levels were reached that day.
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 1.0838 or 1.0887.
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 last Thursday that despite some bearish factors, we still had a pattern of higher lows and highs below 1.0887.
For this reason, I preferred to look for a conservative short trade, ideally from 1.0887 again, although I would also take a short trade from a bearish reversal at 1.0836 if any reversal there was strong.
This was enough to keep out of trouble but brought no benefit as the price did little last Thursday, just going sideways.
The technical picture now is almost the same as it was. I have adjusted the nearest resistance level from 1.0836 to 1.0838. The price is still consolidating below that level and is still being bought every time it dips below 1.0800.
The consolidation pattern now is slightly bullish, and I think the price may break suddenly above 1.0836 and rise quite quickly to the next resistance level at 1.0887 today.
I would again be ready to take conservative short trades from 1.0836 or 1.0887, preferably the latter, but there will probably be better opportunities today in other currency pairs such as the GBP/USD which is showing more price movement.
There is nothing of high importance due today concerning either the EUR or the USD.