EURUSD: More bullish
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Idea
Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.1131.
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.
Long Trade Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1018, 1.0993, or 1.0966.
Put 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 the price action seemed to have a weakly bullish bias, but the long-term trend was bearish so contradicts that. For this reason, plus the quiet price movement, I suspected it was better to avoid trading this pair. I was correct on the direction as the price rose.
The move up has stalled somewhat but the medium-term picture is still weakly bullish. There is still some way to go before the next resistance level at 1.1131 so the price might rise further. Much of the action may depend upon any news which emerges over a possible Brexit deal as this will impact the Euro to some extent.
I think it will be hard to find a good opportunity in this pair today with the exception of a spike down to 1.1018 or a spike up to 1.1131, either of which could be faded. This is unlikely to happen, but might if there is major Brexit news later, so limit orders to fade these levels with reasonably tight stops might be placed just in case.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of Philly Fed Manufacturing Index data at 1:30pm London time and Crude Oil Inventories at 4pm.