EUR/USD: No directional bias
Yesterday’s signals were not triggered, as none of the key levels identified were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5 pm London time today.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1849, 1.1863, 1.1882, or 1.1897.
- 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
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1786 or 1.1745.
- Place the stop loss 1 pip below the local swing low.
- 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 the price seemed stuck between an area of support below 1.1785 and the resistance levels above.
I was looking to take either a long trade from a bullish bounce at 1.1745 or a short trade from a bearish reversal at 1.1849. I thought that there may be a slight bearish bias to the price movement.
This call was more or less borne out by what has happened over the past 24 hours, with both nearby key levels not even being reached.
The price has continued to consolidate between 1.1785 and 1.1850 and this is likely to continue until the New York session today at least.
If these levels do hold today, we will be more likely to see a breakout from this range tomorrow.
In the meantime, I will take either a long trade from a bounce at 1.1785 or a short trade from a reversal at 1.1849.
There is nothing of high importance due today regarding either the EUR or the USD.