EURUSD: Bearish below 1.1090
Yesterday’s signals were not triggered, as none of the key levels were reached.
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 1.1090, 1.1117 or 1.1163.
- 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 Idea
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1030.
- 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 the picture had become more bearish still, with the price breaking below the former support at 1.1117 and making new lows below 1.1100. I was ready to take a bearish bias on this pair if we had gotten a bearish reversal later following a retracement to the resistance at 1.1117. I was correct to look for a short trade, but the price never made it all the way back to 1.1117.
The picture now is even more bearish as we have new obvious “flipped” resistance at 1.1090. The Euro is weak, the Dollar is strong, and almost everything suggests lower prices. However, bulls need to be careful, as we have a major bullish inflection point below at 1.1030 and probably extending for some pips above that price also, which can be seen from the bullish pin candlestick which formed in this area if you look on a daily chart.
I would take a bearish bias if the price is below 1.1065 at 9am or 10am London time, but only until 1.1030 and I would be very cautious to watch for a bullish reversal in this area.
There is nothing of high importance due today concerning either the EUR or the USD.