My previous EUR/USD signal on 20th November was not triggered, as none of the key 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 $1.0489 or $1.0568.
- 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 $1.0425 or $1.0349.
- 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.
Top Forex Brokers
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 EUR/USD analysis early last week, I wrote that it was hard to see a significant bearish reversal happening today. I was completely wrong about that.
The technical picture now is interesting. After hitting a near 2-year low last Friday on a sudden spike down towards the $1.0300 area, the price rebounded strongly and opened this week with a bullish price gap. The gap was filled yesterday, but the price again rebounded from there and looks as if it might now test the resistance level nearby at $1.0489.
This currency pair has tended to trend quite reliably in recent years, and it is in a valid long-term bearish trend. However, I think it looks very doubtful that we are going to see significantly lower prices any time soon. I’m not sure the price is going to rise either, but the technical picture will become more bullish if the price can get established later above $1.0489, especially if it also gets established above $1.0500.
There are probably going to be better currency pairs to trade today than this one, at least for short-term / day trading.
There is nothing of high importance due today concerning the Euro. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time, followed by FOMC Meeting Minutes at 7pm.
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