EUR/USD: Yet strong long-term resistance in pivotal area above 1.0961
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 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 1.0961 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 1.0915, 1.0870, or 1.0838.
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 the price was likely to fall as long as it remained below 1.0887. I took a cautiously bearish bias below 1.0887 until 1.0838.
This was not a good call as the price rose over the day and is now rising even more strongly to approach the key resistance level at 1.0961.
The Dollar and Yen are in retreat and riskier currencies, including the Euro, are advancing firmly. This creates a bullish environment for this currency pair.
However, the price has been ranging for several weeks from about 1.0960 to 1.0750, and we are again at the top of this range or very near to it, so a strong bearish reversal is getting increasingly likely.
I am ready to take a short trade from any strong bearish reversal which happens today anywhere between 1.0961 and 1.1056. If the rejection hits the huge round number at 1.1000 when it makes such a reversal, I will have even stronger confidence in it.
There is nothing of high importance due today concerning either the EUR or the USD.