EUR/USD: More bearish below 1.1300
Yesterday’s signals were not triggered as there was no bearish price action when the resistance level identified at 1.1309 was first reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken earlier than 5 pm London time today only.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1354.
- 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
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1303 or 1.1245.
- 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 despite the short-term bullishness, there was no reason not to expect another bearish wave to start below the major resistance level at 1.1345.
This was a great call as the price continued to advance before peaking and making a bearish turn almost exactly at that price. The candlestick structure from that high looks like a bearish turn.
This is an important technical development as this area has acted as long-term resistance at the top of a consolidation range.
If the price can get established below the round number at 1.1300 it will be likely to move down to 1.1250 but the move may be slow. This is the more likely scenario over today and tomorrow.
Alternatively, if the price can get established above 1.1354 that would signal a major bullish breakout from the range is underway.
There is nothing of high importance scheduled today regarding either the EUR or the USD.