Last Thursday’s EUR/USD signals were not triggered, as there was no bearish price action at any of the identified resistance levels which were reached that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 5pm 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 1.1896, 1.1908, or 1.1922.
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.
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
Long entry following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.1850, 1.1826, 1.1807, or 1.1772.
Put the stop loss 1 pip below the local swing low.
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 last Thursday that as we had just seen another 50-day low closing price, we were likely to continue to see still lower prices over the coming days. I thought that a key level worth watching was 1.1807, and that we were likely to see a down day on Friday.
I was wrong about the lower prices, and about Friday being a down day. However, I was very right about 1.1807, as the bullish break up past that level triggered a much stronger bullish directional move.
We have seen the long-term bearish trend fail to carry through, with the price rejecting the low strongly. Technically, the price is comfortably back within a long-term and very flat consolidation zone.
This pair has become much less interesting to trade, but the consolidation seems to strong and unlikely to break, that I think there might be a worthwhile opportunity today entering either a short trade from a bearish reversal at 1.1896, or a long trade from a bullish reversal at 1.1807. The resistance at 1.1896 stands out much more than any of the current support levels do, but of all the support levels, 1.1807 looks the most likely to be strong as it was pivotal when it was last in play, and because it would complete the final shoulder of a bullish head and shoulders if a bullish leg completes from it.
Concerning the USD, there will be a release of CPI (inflation) data at 1:30pm London time. There is nothing of high importance concerning the EUR scheduled today.