EUR/USD: Moving down from long-term resistance at 1.1354
Yesterday’s signals were not triggered as there was no bullish price action at 1.1303.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8 am and 5 pm 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 1.1303 or 1.1354.
- Place the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1245 or 1.1195.
- Place the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
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 if the price could get established below the round number at 1.1300 it would be likely to move down to 1.1250 but the move may be slow. This was a good call as the break below 1.1300 saw the price move down to 1.1260, although it seems to be finding support in this area.
The short-term price action is now bullish, and the price looks likely to test the resistance at 1.1303. A break above that level is looking more likely and will probably cause another attempt at the long-term resistance at 1.1354. If the price can finally get established above 1.1354, it would signal a major, technically significant bullish breakout.
It is worth noting that despite the consolidation patterns, there is a weak medium-term bullish trend.
I am ready to take a long trade but only from a bullish bounce following a retracement to 1.1251.
There is nothing of high importance scheduled today regarding either the EUR or the USD.