EUR/USD: Broke key resistance at 1.0832
Yesterday’s signals were not triggered, as the resistance level at 1.0832 was not reached.
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 1.0895 or 1.0968.
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 1.0832 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 there may be relatively little movement today due to it being Monday, but if this level at 1.0832 continued to hold as resistance, we were likely to see a renewed decline in the price, so I was ready to take a short trade from a bearish bounce there.
This was an OK call as that resistance level held yesterday.
However, we are now seeing quite strong moves against the USD everywhere and although the Euro is not one of the strongest currencies, it is no exception. The price has broken up above the former resistance level at 1.0832 which is now likely to act as support.
The price is definitely bullish now over the short-term, but there is no long-term trend to exploit here, so it should be best to trade bounces off key levels carefully in either direction on short time frames. I think the price is likely to rise higher today and quite likely to at least hit the resistance level at 1.0895 if not exceed it.
There is nothing of high importance scheduled for today concerning either the EUR or the USD.