EURUSD: More bearish below 1.1199
Yesterday’s signals were not triggered as the price did not reach any key levels during the London session.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 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 1.1199 or 1.1244.
- 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.
- Remove 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 Idea
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1161.
- 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.
- Remove 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 yesterday that the price was now towards the bottom of its range, approaching the key support level at 1.1199, which made the picture slightly bearish, in line with the weak long-term bearish trend. Nevertheless, I still expected 1.1199 would hold. It did during the London session, but the latter hours of the Asian session have seen the pair break bearish below that level quietly but seemingly firmly. This creates a more bearish picture as long as the price remains below 1.1191. We are now approaching very long-term low prices, so how the price reacts between 1.1100 and 1.1200 is really worth watching here. One possibility is a bullish reversal at the support of 1.1161. Yet right now the best opportunity looks short between 1.1199 and 1.1161. I would take a bearish bias if the price is below 1.1185 at 9am London time until 1.1161.
There is nothing of high importance due today regarding either the EUR or the USD.