EURUSD: Pivotal point at 1.1129
Last Thursday’s signals were not triggered, as none of the key levels were hit that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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 1.1083, 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 last Thursday that the most likely direction was downwards, and as such I was ready to enter a short trade following a bearish bounce at 1.1128 later.
I was correct about the direction, although it was slight, and the price never reached 1.1128.
We now see a more bullish picture as the price seems to have bottomed out just a little above the nearest support level at 1.1083 and is now trying to break up above the resistance level which I have adjusted 1 pip upwards to 1.1129. However, we have confluence here – a short to medium term bearish trend line is very close by as can be seen in the price chart below.
This means that direction is hard to call, and our best tool is to see whether the resistance at 1.1129 holds. A couple of consecutive hourly closes above 1.1135 during today’s London session would be a weakly bullish sign. Alternatively, a bearish rejection in this area) which is admittedly already a bit too messy) might produce a downwards push. A bullish sign would be clearer if it comes.
There is nothing of high importance due today regarding either the EUR or the USD.