EURUSD: Ranging between 1.1235 and 1.1279
Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 1.1250.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Ideas
Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.1279 or 1.1317.
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.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1250 or 1.1235.
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.
Take off 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
I wrote last Thursday that it seemed the best strategy was to look for either long or short trades without bias, at turns at major support or resistance levels. This was a good call as it was the correct approach, although it did not pay off in this particular case.
The ranging conditions continue, but there may be a bullish breakout above 1.1279 which could see the price go up all the way to 1.1317 where the next resistance level is located. However, there is an empty news agenda today so there is likely to be relatively little movement.
I have no real faith in a long breakout trade above 1.1279, but if the price gets established above that for a couple of hours during the first half of the London session, it would be likely to rise another 10 or 20 pips approximately. The Dollar is generally weak which supports the bullish case.
There is nothing of high importance due today regarding either the EUR or the USD.