EURUSD: Range intact from 1.1163 to 1.1244
Yesterday’s signals were not triggered, as none of the key levels were ever 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 1.1198, 1.1244 or 1.1279.
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 immediately upon the next touch of 1.1163 or 1.1117.
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 there was no change to the ranging conditions between 1.1163 and 1.1244.
Overall, I was not looking to the bullish side particularly. I thought that the best strategy here would be to trade any reversals at either nearby key boundary of this current price range.
This was an accurate analysis but could not be exploited as neither of the nearest key support and resistance levels were reached.
The price is still within this range but is looking more bearish after the U.S. Dollar strengthened upon an announcement that the implementation of tariffs on Chinese imports would be delayed. There is a new lower resistance level just below the round number at 1.1200 which strengthens the bearish case. I am more convinced that we will see a breakdown below 1.1163 and that level is very likely to be today’s pivotal point.
I would take a bearish bias today if the price is falling and below 1.1160 at 9am London time.
There is nothing of high importance due today concerning either the EUR or the USD.