EURUSD: Weakly bearish below 1.1110
Yesterday’s signals were not triggered as unfortunately the bearish turn at 1.1083 took place after 1pm London time.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered until 5pm London time today.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1110 or 1.1141.
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
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.
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 although the price may be bottoming out near the support level at 1.1083 creating a potential bullish double bottom, bulls should wait for the price to get established above 1.1110 as the price still looked weak and prone to more downwards movement. This has been a very good call so far as the price did bounce from 1.1083 but seems to be reluctant to get above the round number at 1.1100.
The technical picture still looks essentially bearish with a medium-term bearish trend line holding the price down and all resistance levels continuing to hold. However, it is hard for the price to get below 1.1083 and there is plenty of support leading down to the big round number at 1.1000.
This means the pair is either best avoided now between 1.1000 and 1.1110 or reversals at key levels are entered as trades and monitored on short time frames for conservative profits.
There is nothing of high importance due today concerning either the EUR or the USD.