EUR/USD: Today’s pivotal point likely at 1.1321
Yesterday’s signals were not triggered, as none of the key levels identified have been reached yet.
Today’s EUR/USD Signals
Risk 0.75%.
Trades my only be entered between 8 am and 5 pm London time today.
Short Trade Ideas
- Short entry immediately upon the next touch of 1.1517.
- 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 Ideas
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1321, 1.1297, or 1.1254.
- 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.
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 we were likely to see the continuation of a range between approximately 1.1250 and 1.1350, with a potential bearish head and shoulders formation at the top and a double bottom so far at the bottom, so it was hard to say in which direction we were more likely to get an eventual breakout.
This was a relatively OK call although the price did exceed the upper range of my forecast by a few pips.
The picture now has become more bullish technically, as we are seeing the highest support level at 1.1321 hold, and we have broadly a pattern of both higher highs and lows over recent days.
The Euro is also one of the relatively stronger currencies and it held up well against the advance by the USD which we saw last night.
I think today is going to be an up day, but I doubt there will be any great entry opportunities for the time being. However, if the price does hit 1.1321 and bounces firmly, I think that will be a good long trade entry trigger.
There is nothing of high importance scheduled today regarding either the EUR or the USD.