EUR/USD: Bulls control stands
Today's EUR/USD signal:
- Risked 0.75%
- Trades may only be taken today between 08:00 and 17:00 London time.
Short Trade Ideas:
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1765, 131740 or 1.1710.
- Put 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.
- Remove 50% of the position as profit when the trade is 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 1.1690 or 1.1630.
- Put the stop loss 1 pip below the local swing low.
- 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.
EUR/USD Analysis
The sharp and historic US economic slowdown during the second quarter of this year confirms the negative impact on the largest economy in the world during the COVID-19 pandemic era and the Fed linking the future of economic recovery to the elimination of the virus. Increased pressure on the US currency and its gains by the end of trading last week came amid profit-taking selling as the price of EUR/USD rose to its highest level in 18 months, reaching the 1.1908 resistance. The pair started trading this week around the 1.1777 support.
Forex traders are waiting for a pullback to new support levels to start buying the pair again. I noted many times that Euro gains will not last long, as the dollar was the biggest winner from the first wave of Covid-19, it will have a greater affect from the second wave that started recently.
I recommend buying EUR/USD from the support levels of 1.1715 and 1.1655, respectively.
Regarding the Euro, manufacturing PMI readings will be announced. Regarding the US dollar, the ISM Manufacturing PMI and construction spending data will be announced.