EURUSD: Bearish below 1.1088
Yesterday’s signals were not triggered, as there was no bearish price action when 1.1090 was reached.
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 1.1117 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 ride.
Long Trade Ideas
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1088 or 1.1030.
- 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 Euro was weak, the Dollar was strong, and almost everything suggested lower prices. However, bulls needed to be careful, as we had 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 was correct to want to see a break below 1.1065 before going short, as this area was never broken, so that was enough to keep out of trouble when the minor bullish movement happened.
The price is now above this pivotal point at about 1.1090 and this is again likely to be the pivotal point of the day. If the price can get established below it, I would take a bearish bias, but watch out for the FOMC release later which could push the price anywhere with strong volatility.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.