EUR/USD: More bullish above 1.0889
Yesterday’s signals were not triggered as the bearish price action near 1.0881 did not happen until after the London session closed.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may 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 1.0960 or 1.1056.
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 1.0889 or 1.0710.
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 I expected the price would continue to advance here over the coming hours, but the resistance level at 1.0881 could be very pivotal so I was prepared to take a short trade following a bearish reversal there. This was a good call, as the price did advance during the London session before stalling briefly at the 1.0881 area. After the London close, the price broke above that level and continued to advance. We see now that the Euro is strengthening and over the short-term is now one of the strongest major currencies, while the USD continues to broadly sell off weakly.
I think the price is likely to rise gently over the short-term, but the resistant area around 1.0960 looks strong and will be a hard test for bulls. If the price can get established above that level it would be a bullish sign, as it has a lot of room to rise above the big round number at 1.1000 which would be the next hurdle.
I am prepared to take a short at a reversal at 1.0960 and also a long at a bullish bounce from 1.0889.
There is nothing of high importance scheduled for today concerning the EUR. Regarding the USD, there will be a release of Unemployment Claims data at 12:30pm London time.