My previous EUR/USD signal on 26th June was not triggered, as the bullish price action took place a bit below the support level identified at $1.0899.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered prior to 1pm London time today.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0944 or $1.1029.
- 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 50 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 $1.0874 or $1.0811.
- 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.
EUR/USD Analysis
In my previous analysis of the EUR/USD currency pair on Monday last week, I wrote that the technical picture had become bullish, but also that as the support level at $1.0899 was very confluent with a round number, there could be a long scalping opportunity here, but the price was unlikely to move much.
This was a fairly good call as the price did move a little and the day was an up day, but the low was some pips below $1.0899.
The price has done a little over the past week. We are seeing a medium-term consolidation between $1.0840 and $1.0960, with the price chart currently dominated by a strong area of resistance with an upper boundary at $1.0944.
The price is slowly but steadily selling off after getting close to the resistance at $1.0944. This may well continue, with the price drifting down to the nearest support level at $1.0874. A long scalp might be a potential trade there, but with the US on holiday, by the time the price reaches that level, the day’s action will probably be over. Therefore, I only see that long scalp as worthwhile if it happens quite quickly after the London open.
There will likely be better opportunities today elsewhere in the Forex market in currencies such as the Australian Dollar and the Japanese Yen, where there is at least some volatility.
There is nothing of high importance due today regarding either the EUR or the USD. It is a public holiday today in the USA.
Ready to trade our daily Forex signals? Here’s a list of the best Forex trading platforms worth checking out.