EUR/USD Forex Signal: Consolidation Continues Below $1.1000 Higher Support at $1.0936.

My previous EUR/USD signal on 8^th January produced a profitable long trade from the near pin bar which made a bullish rejection of the support at $1.0930 on the hourly time frame.

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 $1.0998, $1.1030, or $1.1107.

• 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 $1.0936, $1.0901, or $1.0848.

• 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 one week ago, I wrote that the pair was making a consolidation between roughly $1.0900 and $1.1000. I thought that a bullish bounce at the higher support level of $1.0930 could be a nice trade but I warned that the $1.1000 area was likely to hold as strong support. This was a good and completely accurate call in its entirety.

The technical picture is completely unchanged with the small exception of the re-establishment of the higher support level near $1.0930 – it is now positioned at $1.0936. The big round number support and resistance at $1.0900 and $1.1000 remain intact as significant barriers to price action. This looks unlikely to change soon, especially today with no major news about either currency scheduled. It is also a typically quiet Monday.

I therefore see the best potential opportunities here as a long scalp from $1.0901 or a short scalp from $1.0998. I think the breakout which eventually happens will be to the long side, above the $1.1000 area, which will be bullishly significant.

There is nothing of high importance due today regarding either the EUR or the USD.