EUR/USD Forex Signal: Continuing Consolidation Likely

EUR/USD: Short-term weakly bullish above 1.1241

Last Thursday’s signals were not triggered as there was no bullish price action at either 1.1241 or 1.1205.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered before 5pm London time today.

Short Trade Idea

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1281, 1.1311, or 1.1354.

• 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

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1240, 1.1205, or 1.1155.

• 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.

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EUR/USD Analysis

I wrote last Thursday that the most likely scenario by far seemed to be a consolidation. We would probably see the price move sideways now and support and resistance levels nearby would most likely not be well respected. I therefore thought it best to stand aside from trading this currency pair.

I think this was a good call as although the price did fall a little on Thursday, the movement has basically been sideways. There is no trend on any time frame except the short-term bullish break above 1.1240 which we are seeing now.

I see the conditions here as remaining unpredictable so again I am not eager to trade this pair. The only potential opportunity I see from the chart which looks reliable would be a long trade from a bullish bounce at the double bottom support level at 1.1195.There is nothing of high importance scheduled today regarding either the EUR or the USD.