My previous EUR/USD signal on 12th February was not triggered as unfortunately the bearish price action took place just above the resistance level which I had identified at $1.0798.
Today’s EUR/USD Signals
- Risk 0.75%.
- Trades must be entered prior to 5pm London time today.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0790, $1.0807, or $1.0864.
- 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 20 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 $1.0744, $1.0726, or $1.0653.
- 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 one week ago, I wrote that the small zone of resistance centred on the round number at $1.0800 was likely to be today’s pivotal area. This was a good call as the price made the high of the day before falling just a few pips above $1.0800.
The technical picture has hardly changed over the past week. The price remains within a medium term, arguably even long-term bearish price channel, which has more weight as it is symmetrical. The upper trend line of this price channel is confluent with the same zone of resistance which I mentioned one week ago focused on the round number at $1.0800.
For these reasons, the logical best opportunity to watch for will be a short trade entry from a bearish reversal in the $1.0800 area.
Alternatively, if we get two consecutive higher hourly closes above $1.0820, the price will likely rise to $1.0864.
As it is a Monday today and a public holiday in the USA, we are unlikely to see much volatility today.
There is nothing of high importance due today regarding either the EUR or the USD. It is a public holiday today in the USA.
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