EURUSD: Bearish below 1.1020 / 1.1000
Yesterday’s signals were not triggered, as none of the key levels have been hit yet.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1097 or 1.1162.
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.
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 Idea
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1021 or 1.0959.
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.
Remove 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 despite the new U.S. Dollar weakness, the Euro continued to be the weakest major currency, so it will only take a little strength in the Dollar to push the price down here again. I thought that if the price can get established below the big round number at 1.1000 it would be well-placed to start falling again in line with the long-term bearish trend.
Although I have been looking to the bearish side, the price has continued to hold up above both 1.1000 and the support level at 1.1021. Despite this mild bullish sign, it is difficult to see the price getting above the 1.1050 to 1.1100 area which is strong pivotal resistance, and it can be identified easily on a longer-term chart.
For this reason, plus the long-term bearish trend in this currency pair, I am still looking to the short side, and waiting for the price to get established below 1.1000 before taking a bearish bias.
There is nothing of high importance due today concerning either the EUR or the USD.