EURUSD: Weakly bearish below 1.1317
Yesterday’s signals produced a short trade from the bearish rejection of the resistance level at 1.1317. The trade is in floating profit but looks relatively uncertain so it might be wise to close it for a few positive pips.
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 H1 time frame immediately upon the next touch of 1.1317 or 1.1359.
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 1.1271 or 1.1206.
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 yesterday that the environment was still bearish, but the price was close to the support level of 1.1271 which looked more likely to hold, so a period of consolidation seemed to be the most likely outcome. This was a good call and reflects well what actually happened over the past 24 hours.
The price action is weakly bearish but the support level close by still looks firm. The price is well within its long-term range, so the bigger picture is still a ranging price. The short-term price action at the time of writing is weakly bearish.
For these reasons, the best approach on this pair would probably be scalping for conservative profit targets from bounces as either of the key levels. I do not see an obvious significant directional move coming, at least not one that can be predicted with any probability, so there will probably be better opportunities in other currency pairs today.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time followed at 3pm by ISM Non-Manufacturing PMI data.