EUR/USD: Strong support above 1.0832
Last Tuesday’s signals were not triggered, as there was no appropriate price action at either of the key levels which were reached that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today only.
Short Trade Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0923, 1.0939, or 1.0968.
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 Idea
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0832.
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 last Tuesday that I was expecting both the support at 1.0926 and the resistance at 1.0968 to hold, taking no directional bias. Both levels were exceeded that day but only temporarily.
We are now seeing a more bearish technical picture with the price selling off over the last couple of days as the USD made a comeback against a Euro which shows some long-term weakness. However, the problem with being bearish here is that it is clear that the supportive area starting at about 1.0832 is strong and looks set to continue to hold up the price. Therefore, it seems that we are likely to see this continuing consolidation between about 1.0850 and 1.1000 over the near term. I take no directional bias here today and would be happy for a short trade from a reversal at 1.0923 or a long trade from a reversal at 1.0832.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.