EURUSD: Very flat between 1.1235 and 1.1279
Yesterday’s signals were not triggered, as the bearish price action took place slightly above the resistance level at 1.1279.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1279 or 1.1317.
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 Ideas
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1235 or 1.1199.
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.
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 were ranging conditions, and that a bullish breakout was possible above 1.1279, but I had no real faith in it. This was a good call, as the price failed just above that level, so trading the failure at that pivotal point would have yielded some short pips.
The price is currently right in the middle of both its long and short-term ranges and looks quite “dead”. We have no direction here at all, so trading this currency pair is probably best avoided today. Rejections of key levels in either direction could be scalped for conservative targets.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of Retail Sales data at 1:30pm London time, followed by minor speeches from the Chair of the Federal Reserve at 6pm and FOMC Member Evans at 8:30pm.