EUR/USD: More bullish if daily close above 1.1876
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
- Short entry immediately upon the next touch of 1.2000.
- 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 1.1827 or 1.1780.
- 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
Recent weeks have seen strong gains by the Euro, coupled with the start of a long-term downwards trend in the U.S. Dollar. This has pushed the price of this pair up by several hundred pips in a strong bullish move. However, the last week or so has seen the price sell-off from the high and then begin to consolidate.
We still see bullishness in the Euro, albeit more quietly, but it is starting to look as if the price is going to advance to at least test close to the recent multi-month high.
Technically, the resistance level at 1.1863 is the last resistance level before the very big round number and psychological level at 1.2000. This means that if this level becomes invalidated, which is currently looking quite likely based upon short-term price action, there will be no technical obstacles to a further rise in price.
It is important to note that the resistance level at 1.1863 might still hold today.
I am ready to take a long trade from any firm bounce at any nearby support level, but I won’t take a strong bullish bias here until we see a New York closing price above 1.1876, making a new multi-month high closing price.
There is nothing of high importance due today regarding either the EUR or the USD.