My previous EUR/USD signal on 7th September was not triggered as there was insufficiently bullish price action when the support level at $1.0700 was first reached.
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 $1.0771 or $1.0828.
- 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 $1.0719 or $1.0626.
- 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 technical picture had become more bearish although I noted the cluster of support levels above the round number at $1.0600.
I was looking for a new short trade from any bearish reversal at a resistance level.
I was right about looking to the short side, as it was a down day.
The technical picture has not changed very much since then, with the price mostly consolidating above the $1.0700 area, so I was also correct about the supportive area near $1.0600.
The consolidation seems to be bearish, and although the US Dollar lost some ground and then remained steady over recent days ahead of tomorrow’s CPI (inflation) data release, the Dollar is gaining ground as I write and testing the support level at $1.0719, which looks pivotal. However, I also want to see the round number at $1.0700 decisively breached before feeling certain enough to enter a new short trade.
I will go short if we get two consecutive hourly closes below $1.0700, but I will look to exit at $1.0626 or even $1.0650.
The real action in the Forex market will most likely not happen until tomorrow’s release of US inflation data.
There is nothing of high importance due today concerning either the EUR or the USD.
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