EURUSD: Bearish breakdown below 1.1000
Yesterday’s signals were not triggered as there was no bullish price action at 1.0994.
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 1.0998 or 1.1024.
Put 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.
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 a weak long-term bearish trend, so a bearish breakout (below 1.0994) would probably be more interesting than a bullish one.
We got this breakdown, with new resistance levels just above and below the important level at about 1.1000, so the picture is looking more bearish today. I am very ready to take a short trade if we get a bearish failure and the start of a strong downwards push at either 1.0998 or 1.1025. The price could be ready to fall a long way as there are no key support levels for almost another 150 pips below the current price, so I am enthusiastic to take a bearish here following the right set-up.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.