Last Thursday’s EUR/USD signal was not triggered as there was no bullish price action when the price first reached the support level at $1.1301.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 5pm London time today only.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame. immediately upon the next touch of $1.1302, $1.1307, or $1.1327.
Place 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.
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 $1.1267 or $1.1229.
Place 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.
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 last Thursday that we were seeing a lack of direction and volatility in this currency pair, but that we may get a bullish bounce at the support level (very confluent with a round number) at $1.1301, so a scalp from that price if reached could be a nice trade opportunity for the day. I also thought that the price would be extremely unlikely to break above $1.1400.
I was wrong about $1.1301 which did not give a good opportunity, and we also saw increasing volatility and directional movement over the day.
The picture now is very consolidative, with the price moving less in this currency pair than in most others. This is mostly because we have major releases from the central banks of both currencies due tomorrow (Federal Reserve) and Thursday (European Central Bank) and markets are just waiting for these.
It is very likely that the price will not move much today, so the only opportunity I see here is for scalpers who may try to scalp long from the support level at $1.1267. The price is close to this level at the time of writing.
There may also be a short scalp opportunity later at the resistance confluent with the round number at $1.1300 if it is reached.
Regarding the USD, there will be a release of PPI data at 1:30pm London time. There is nothing of high importance due today concerning the EUR.