EUR/USD: Beware long-term resistance near 1.1500
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 may only be entered between 8 am and 5 pm 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 1.1517 or 1.1570.
- 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 1.1394, 1.1371, or 1.1321.
- 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 I would be happy to enter a long trade today from a bullish bounce which may happen at any of the support levels identified. Scalpers may also be interested in a short trade from the first touch of 1.1500 or 1.1517.
This was a good call insofar as the price made another long-term high close, moving up a little over the course of the day, although none of the resistance levels were touched. Nevertheless, the low of the day was significantly just a few pips above the support level I had identified at 1.1394.
There is no doubt that the technical picture is bullish, as can be easily seen by looking at the price chart below, with the price moving almost within a bullish channel. However, there is potentially strong resistance overhead around 1.1500, and the pace of the rise has slowed down over the past day.
I remain bullish as long as the price holds up above 1.1394 and I will take a long trade from a bullish bounce at either that level or the lower support level at 1.1371.
There is nothing of high importance due today regarding either the EUR or the USD.