EURUSD: Weakly bullish above 1.1145
Yesterday’s signals were not triggered, as there was no bearish price action at 1.1145.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 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 1.1169 or 1.1204.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1145, 1.1110 or 1.1083.
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 yesterday that the price would most likely hit 1.1145 before it hit 1.1110. What would happen at 1.1145 would probably be the next useful clue that technical analysis would bring us, so I saw that as the day’s likely pivotal point.
This was a good call as the price did reach 1.1145 and got above it, and that level has flipped to become new higher support, so my expectation was accurate.
There is no long-term trend, but we have a weakly bullish picture with the Euro relatively strong over the short-term against the USD.
This pair is likely to be in the market’s focus today as the ECB are releasing their policy meeting minutes.
The outlook should remain bullish as long as the price can stay above 1.1145.
Regarding the EUR, there will be a release of the ECB Monetary Policy Meeting Accounts at 12:30pm London time, and the President of the ECB will be speaking at 6pm. Concerning the USD, there will be a release of Retail Sales data at 1:30pm.