My previous EUR/USD signal on 12th March was not triggered as the bullish price action took place below the support level which I had identified at $1.0914.
Today’s EUR/USD Signals
- Risk 0.75%.
- Trades must be entered between 8am and 5pm London time today only.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0855, $1.0872, or $1.0920.
- 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 H1 timeframe immediately upon the next touch of $1.0832, $1.0790, or $1.0744.
- 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
In my previous analysis of the EUR/USD currency pair two weeks ago, I wrote that the real question seemed to be whether the $1.0900 area would hold now. If the price broke below $1.0900 it looked likely fall to at least $1.0867.
I thought that a short trade from $1.0945 was also a potential setup worth looking out for.
This was a good call as both these levels held over the day.
The technical picture now looks much more uncertain, with the only features on the chart worth noting being:
- The upper descending trend line, which will soon be confluent with the horizontal resistance level at $1.0920.
- The fact there are several support and resistance levels close by suggest ranging behaviour and a proneness to reversals.
The best approach I can see working here today would be to look for a long scalp from a bounce off the support at $1.0832 or a short scalp from a bounce off the resistance at $1.0855.
In the unlikely even that the price reaches $1.0920 today, that could be a great entry point for a short swing trade if we start to see a bearish reversal from that level.
Regarding the USD, there will be a release of CB Consumer Confidence data at 1pm London time. There is nothing of high importance scheduled today concerning the EUR.
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