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My previous EUR/USD signal on 18th October produced a profitable long trade from the bullish bounce at the support level I identified at $1.0562.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0616, $1.0643, or $1.0674.
- Put 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 50 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 timeframe immediately upon the next touch of $1.0563, $1.0526, or $1.0515.
- Put 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
In my previous analysis of the EUR/USD currency pair, I wrote that the resistance at $1.0592 and the support at $1.0562 were technically important. This was a good call, as the support level at $1.0562 held almost to the pip and gave an opportunity for a long trade. However, even when the price got above $1.0592 later after the London session ended, it was unable to make a sustained bullish move, and quickly fell back.
The technical picture now is one of consolidation within a long-term bearish trend, but the bullish retracement is quite deep, and we may not see lows below $1.0500 any time soon unless the war in the Middle East widens.
The Euro is showing some relative strength, being the strongest major currency over the past week.
The Dollar is also relatively strong over the long term.
There are no economic data releases scheduled today.
These factors point to a continuing consolidation today, meaning that all the support and resistance levels are quite likely to hold. This means that there could be an opportunity for a scalp either long from $1.0563 or short from $1.0616.
There is nothing of high importance due today regarding either the EUR or the USD.
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