EUR/USD: Approaching long-term high prices
Yesterday’s signals were not triggered as there was no bearish price action when the resistance level identified at 1.1874 was first reached.
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 1.1929, 1.1964, or 1.2005.
- 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 1.1854, 1.1802, or 1.1786.
- 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 I took a slight bullish bias. I was only interested in a long trade from a bullish bounce at 1.1802 or 1.1786.
I was correct to take a bullish bias as the price has continued to rise over the past day and has gotten established above another former resistance level. Unfortunately, there was no retracement to a support level.
The Euro is one of the strongest major currencies, while the U.S. Dollar has begun to weaken more strongly, in line with its long-term bullish trend.
We are seeing a little reluctance to rise above the round number at 1.1900, but the outlook looks bullish. The highest multi-month closing price is 1.1935 and it is possible we could exceed that level today.
The problem for bulls is the there is very strong resistance a bit higher in the 1.2000 area which is a key psychological level as well as a major round number.
I would take a long trade today from a bullish bounce at 1.1854 until 1.1925. I think there is a small likelihood that we will see another rise in price today.
There is nothing of high importance scheduled today concerning either the EUR or the USD.