EURUSD: Still bearish below resistance at 1.1181
Yesterday’s signals produced a short trade entry from the bearish rejection at 1.1181 which is now in floating profit.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1181.
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.
Remove 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
Long entry following the next touch of 1.1030.
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.
Remove 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
I wrote yesterday that there was every reason to remain bearish here, everything I mentioned before applies again today and I take a bearish bias here again. The strong move down from the solid resistance level at 1.1181 which we got yesterday is a good sign for bears as the dollar strengthens almost everywhere. The only reason for bears to be cautious is that we still have not broken below the recent swing low at about 1.1140. I would take a bearish bias later if the price can trade below that level for a couple of hours.
The FOMC release due later could change the current bullish Dollar environment.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm London time.