EURUSD: Move down from 1.1091 most likely
Yesterday’s signals produced a short trade entry from the bearish hourly pin bar which rejected the resistance level I had identified at 1.1091. The trade is still live and the price action slowly turning bearish, so it is probably worth holding and waiting to see if the trade turns profitable.
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 1.1091, 1.1110, or 1.1144.
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 1.1043 or 1.1039.
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 the new resistance level at 1.1110 was looking strong. I thought that a short trade after a retracement back to this level (1.1110) and a bearish rejection could be interesting. This would have been enough to avoid trouble. In fact, the price moved little over the day, and the lower resistance level at 1.1091 has held quite convincingly over the past several hours. This suggests that we are more likely to see the main move of today down rather than up, so a short trade here at 1.1091 might provide just a few pre-Christmas pips on this currency pair. Volatility is likely to be low and trading thin so be cautious and take a conservative profit target if you do trade.
There is nothing of high importance due today regarding either the EUR or the USD.