Long-term bullish trend active again
Yesterday’s signals were not triggered, as the price never quite reached the nearest support level at 1.1827.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 5 pm London time today only.
Short Trade Ideas
- Go short immediately upon the next touch of 1.2000.
- 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 1.1863, 1.1827, or 1.1780.
- Put the stop loss 1 pip below the local swing low.
- 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 the resistance level at 1.1863 was probably going to be invalidated and could then trigger a stronger rise in price all the way up to 1.2000.
We are starting to see this happen, with the price advancing and flipping that former resistance level to new support at 1.1863.
I also said that I would not take a strong bullish bias on this currency pair until we saw a New York closing price above 1.1876, making a new multi-month high closing price. This did not quite happen yesterday, with the New York close coming in a few pips below that price.
The technical situation is undoubtedly more bullish, with the Euro relatively strong and the USD on the retreat now almost everywhere. Higher prices are likely over the short-term, and I will take a strong bullish bias if as I expect the price closes in New York above 1.1876. In the meantime, I will be very happy to take a long trade from a firm bullish bounce at any support level.
There is nothing of high importance due today regarding either the EUR or the USD.