EUR/USD: New long-term highs above 1.1400
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 must be taken before 5 pm London time today only.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1517.
- 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 1.1371.
- 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 technical picture had become more bullish, as we were seeing the highest support level at 1.1321 hold, and we had broadly a pattern of both higher highs and lows over recent days.
This was a good call as the price rose and we had a close yesterday at a new 3-month high, which is another bullish sign. We also see the Euro continue to perform relatively well, and act as a “risky” asset. Risk sentiment was boosted late yesterday mostly upon encouraging news about coronavirus vaccine trials.
The price has risen as the London session gets underway and looks likely to continue upwards now to either touch or get very close to the major round number at 1.1500.
Swing traders have probably already missed the long trade entry, but day traders could try to trade this up to the 1.1500 area on short time frames.
There may be a chance for scalpers to make a few pips going short from 1.1500 or 1.1517 later.
There is nothing of high importance scheduled today regarding either the EUR or the USD.