EURUSD: Ranging between 1.1110 and 1.1145
Yesterday’s signals were not triggered as the bullish price action took place a few pips below the support level at 1.1112.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 5pm London time today only.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1145 or 1.1169.
- 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
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1110 or 1.1083.
- 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 most likely scenario here looked like being a slow rise to 1.1169 over the day. I was wrong, the price actually fell before recovering to just a few pips below the support level I had identified at 1.1112.
The picture is still slightly bullish as the bearish trend line has been invalidated, and there is support holding at 1.1110. However, we have a bearish double top at 1.1145 which has become new lower resistance.
In the absence of any long-term trend, except perhaps a very weak bullish trend, we have little to go on technically except it does look likely from the short-term chart that the price will hit 1.1145 before it hits 1.1110. What will happen at 1.1145 will probably be the next useful clue that technical analysis will bring us, so I see that as today’s likely pivotal point.
I have no directional bias but if the price can make two consecutive hourly closes above 1.1145 before New York opens, we will be likely to see a further rise to 1.1169 today.
There is nothing of high importance due today regarding either the EUR or the USD.