EUR/USD: New 2.5-year low price reached Friday
Yesterday’s signals were not triggered, as the price never reached 1.0865.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 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 1.0865, 1.0889, or 1.0904.
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.
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 there was no reason not to be bearish, although I thought it was possible that the price was putting in a low at about 1.0825. If this low held, it would suggest a deeper bullish retracement could be about to happen.
This was a good call insofar as it was enough to stay out of trouble. The price has continued to act bearishly and even it edge down to fresh and very long-term low prices, but there was no momentum or much volatility in the market yesterday, due mostly to the public holiday in the U.S.A.
There is still no reason to be anything other than bearish, with the U.S. Dollar generally strong still, and the price showing every sign of readying to fall further. So again, I will take a bearish bias today if we get 2 consecutive hourly closes below 1.0825.
Concerning the EUR, there will be a release of German ZEW Economic Sentiment data at 10am London time. There is nothing of high importance due today regarding the USD.