EUR/USD: New 2.5-year low price hit
Yesterday’s signals were not triggered as there was no bullish price action when the support level identified at 1.0904 was reached, and 1.0865 was not reached until after London closed.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 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 1.0904 or 1.0941.
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 Idea
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0865.
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 we had a long-term bearish trend breaking to significant lows and the odds were still in favour of a further fall.
I continued to take a bearish bias and to look for short trades following bullish retracements.
This was a good call as we had another down day, with the price breaking below the former support level at 1.0904 and reaching the next support level at 1.0865, which has held so far.
We have made new 2.5-year low prices and the picture continues to look very bearish. There is no support below 1.0865 until the psychological level of 1.0750 at the earliest, so the price could fall quite sharply if it can get below 1.0865.
I maintain my bearish bias and continue to seek short trades from reversals after bullish retracements in the price which may occur.
The Euro remains the weakest major currency.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of CPI (inflation) data at 1:30pm London time.