EURUSD: Pivotal point at 1.0993 holding is weakly bullish sign
Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8m and 5pm London time today.
Short Trade Ideas
⦁ Short entry 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.
⦁ 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 1.0993, 1.0966, or 1.0941.
⦁ 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 last Thursday that the level at 1.0993 still looked extremely pivotal, and that therefore I would take a long trade at a bullish bounce there, or a short trade following two consecutive hourly closes below the level. In fact, the level was not reached that day, but this approach was proven to be valid on Friday when we got a bullish bounce at 1.0993.
The problem for bulls is that the Euro is generally relatively weak and in a slow long-term bearish trend, so it is hard for the bulls to really get the price moving up. We see now the price has not even reached the next resistance level and is already weakening and threatening to come back to 1.0993 again.
I think the price will reach 1.0993 and the level will again be pivotal. This time I will be looking for a bearish breakdown, and to take a short trade following two consecutive hourly closes below that level.
Concerning the EUR, the President of the ECB will be testifying before the European Parliament at 2pm London time. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm.