My previous EUR/USD signal on 12th December was not triggered, as none of the key levels were reached that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Short Trade Idea
- Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0760 or $1.0824.
- Place 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 50 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
- Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.0575 or $1.0484.
- Place 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.
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
In my previous analysis of the EUR/USD currency pair on 12th December, I thought there was a valid bullish trend, giving potential long entry opportunities at the nearby support levels, but suggesting a bearish double top near the round number at $1.0600.
This was a good call for the day, as the price did rise to get near $1.0600 before falling back later in the day.
My point about the long-term bullish trend was also well taken, as the price then went on to rise the next day, getting well established above a new clear support level at $1.0575. Interestingly, the price action above this level invalided some support and resistance levels, giving us a big gap with no levels between $1.0575 and $1.0760.
The price action is extremely flat and consolidative, with the price just going nowhere in the middle of that wide range.
However, bulls clearly do maintain an edge, as we have seen support levels hold while resistance levels get broke, although the price seems to be in no hurry to rise further. Nevertheless, I have been long of this currency pair for some days in a swing trade.
I see a good long opportunity if we get a bearish retracement to the support level at $1.0575 and a bounce there, with the Euro being one of the major currencies showing good long-term strength.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.
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