EURUSD: Pivotal point at 1.0993 holding
Yesterday’s signals were not triggered, as although the support level at 1.0993 held, the price action there was insufficiently bullish.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 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 1.1039, 1.1043, 1.1056, or 1.1093.
⦁ 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 1.0993, 1.0966, or 1.0941.
⦁ 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 I would be very interested in a long trade entry from a bullish bounce at 1.0993, or a short trade entry if we had gotten a couple of hours consecutive closes below 1.0993 during the day’s London session. This was a good call as the level was the low of the day to the pip, holding effectively as support. However, the action was very quiet overall and the bounce was strong enough to trigger an entry signal.
I take the same approach today as there has been no change to the technical situation. The level at 1.0993 still looks extremely pivotal.
There is nothing of high importance due today concerning the EUR or the USD. It is a public holiday today in the U.S.A.