My previous EUR/USD signal on 8th November was not triggered as unfortunately the bullish price action took place a few pips below the support level which I had identified at $1.0668.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken 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 $1.0726 or $1.0771.
- 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 $1.0653, $1.0611, or $1.0592.
- 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 last Wednesday, I wrote that the support level at $1.0668 looked likely to be the day’s pivotal point. I thought that two consecutive lower hourly closes below $1.0668 would be the pivotal indicator for the day, and this was a good call, as the failure to make two lower hourly closes below that level indicated the start of a bullish movement over the rest of the day.
The technical picture now is weakly bullish, as we continue to see the price slowly grind higher over the last two months or so and print higher lows which remain firm. The price has mostly consolidated within recent days, but there is certainly a bullish bias. This shows that the Euro is a relatively strong currency, as the US Dollar is currently broadly strong.
The price currently looks to be heading upwards to the nearest resistance level at $1.0726, but if it retraces before that and bounces at the support level of $1.0653, I think that could be a nice long trade entry for swing traders.
It may however be a very quiet day with low volatility, as it is a Monday and there are no key data releases scheduled. However, the anticipation of tomorrow’s US CPI data release could inject at least a little volatility into the Forex market in this US Dollar pair.
There is nothing of high importance scheduled today concerning either the EUR or the USD.
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