EURUSD: Weakly bullish above 1.1107
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1198 or 1.1244.
Place 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.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1107 or 1.1063 or 1.1018.
Place the stop loss 1 pip below the local swing low.
Adjust 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 run.
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 price action was drifting and uncertain. This was a good call as the price has gone sideways. However, we now have a clear flipped support level at 1.1107 which strengthens the bullish case. The problem with acting on that right now is that the ECB will be giving its monthly policy release today which could send the Euro strongly in either direction, or nowhere. The best opportunity may well be a spike following the release to an extreme support or resistance level which could then be faded.
There is nothing of high importance due today concerning the USD. Regarding the EUR, there will be a release of French Flash Services PMI at 8:15am London time, followed by German Flash Manufacturing PMI and Services PMI at 8:30, followed by the ECB’s Monetary Policy Statement and Main Refinancing Rate at 12:45pm with the usual press conference 15 minutes later.