EUR/USD: New 50-day high closing price yesterday
Yesterday’s signals were not triggered, as neither of the key levels identified were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1251.
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 1.1155.
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 higher prices here were likely to happen soon, so I was ready to enter a long trade if we had gotten a New York close later at or above 1.1142, or if we had gotten a bullish bounce at the support level at 1.1089.
This was a great call, as the price advanced yesterday before closing in New York above 1.1142, from where it has risen by about another 40 pips so far over the Asian session.
All the signs are bullish: the USD is weak everywhere, the Euro is one of the relatively strong major currencies, there are no key resistance levels until 1.1250 so the price has room to rise, and the new 50-day high close made yesterday typically signifies that the trend is more likely to continue than reverse.
We also have a new higher support level printed at 1.1155.
I think it is likely that the price will continue to rise and reach 1.1250 later today before making a bearish retracement. It could be possible to take a short scalp trade there as a reaction is very likely at that level if hit. However, overall, I look to be long of this currency pair today below 1.1250 by buying sips.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time followed by ISM Non-Manufacturing PMI data at 3pm.