My previous EUR/USD signal on 23rd September was not triggered as none of the key support or resistance levels were reached that day.
Today’s EUR/USD Signals
- Risk 0.75%.
- Trades may only be taken before 5pm London time today.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1182 or $1.1241.
- 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.
- 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 timeframe immediately upon the next touch of $1.1066, $1.1028, or $1.1005.
- 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.
- 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.
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EUR/USD Analysis
In my previous EUR/USD analysis last Monday, I wrote that the picture looked somewhat bullish, but that the price was consolidating below the key resistance level at $1.1187, which looked likely to be the day’s pivotal point.
This wasn’t an especially good call, although the price remained below this level all day, without giving an entry opportunity from a rejection of this level.
The picture has become somewhat more bullish still, with the price yesterday rising to trade at a fresh 1-year high above $1.1200, before falling back later during the New York session to close back in familiar territory below $1.1182.
I see this area of resistance just below $1.1200 as a very strong pivotal point, and with the long-term bearish trend in the US Dollar, there must be a good chance of a bullish breakout.
Therefore, I see the best potential opportunity today as a long trade entry following two consecutive hourly closes above $1.1182, without any significant upper wick on the second hourly candlestick.
Regarding the USD, there will releases of Final GDP and Unemployment Claims data at 1:30pm London time today, while Fed Chair Powell will be giving a minor speech at 2:20pm. There is nothing of high importance due today concerning the Euro.
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