EUR/USD: Bears pushing price below 1.1270
Yesterday’s signals were not triggered, as the bullish price action took place just below the support level identified 1.1272.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 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 1.1321 or 1.1381.
- 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 1.1155.
- 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 everything seemed likely to depend upon what will happen if and when the support level at 1.1272 is reached. If it broke down, we were unlikely to see new highs. If it held, we could have seen another strong upwards movement.
The level almost held but was slightly broken down, and at the time of writing, the level seems to be breaking down more decisively. So, this seems to have been a good call with 1.1272 a pivotal point, which is now looking bearishly broken.
The technical picture is now more bearish, and the price seems to have considerable room to fall further as there are no key support levels above 1.1155. The USD is also making a comeback, which has not changed any long-term trends, but is technically significant.
The price looks weakly likely to fall further here over the course of today, but there does not appear to be an attractive short trade set-up that is going to be available, so it may be best to trade another currency pair for now.
There is nothing of high importance due today concerning either the EUR or the USD.
