EURUSD: Supported again above 1.1100
Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1220 or 1.1225.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1174 or 1.1161.
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 last Thursday that the price has continued to fall and printed new lower resistance at 1.1159. Volatility was relatively low but there is no reason not be bearish and I was ready to take a bearish bias if we get a retracement to 1.1159 and a bearish reversal there.
This was a good call as it was enough to stay out of trouble and not get short that day. Thursday saw the pair bottom out again above the round number at 1.1100. The dominant characteristic of markets since the end of last week has been strong risk-off sentiment which has strongly boosted safe havens and the Euro is a minor beneficiary of that. This has pushed the price back up above an area of former resistance, and we now seem to have support in the same area between about 1.1175 and 1.1160. The lower edge of this is likely to be today’s pivotal point. The short to medium-term signs are weakly bullish, but I have no strong faith in a bullish direction here due to the long-term bearish trend. The best that can be said is that 1.1160 could be a very precise pivotal point for this currency pair today.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.