EURUSD: Bullish consolidation above 1.1068
Yesterday’s signals were not triggered as both reversals happened just beyond their respective support and resistance levels.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1107 or 1.1140.
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 1.1068, 1.1056, 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 this currency pair was caught between weakness in both the Euro and the U.S. Dollar. I thought that much would now depend upon whether the support at 1.1071 broke first (that would be more bearish) or the resistance at 1.1093 (that would be more bullish).
This was not a very useful call as the resistance at 1.1093 appeared to break first, but the price quickly pulled back into its consolidative area.
It is still the case that both currencies are relatively weak, with the USD somewhat the weaker. Therefore, we are seeing a weakly bullish consolidation within a congested area.
There are likely to be better opportunities elsewhere, but it seems likely that today’s pivotal point here will be 1.1068, so as long as this level holds the price is likely to continue upwards even if it does so slowly.
There is nothing of high importance due today concerning either the EUR or the USD.