My previous EUR/USD signal yesterday may have produced a losing long trade from the bullish rejection of $1.1831.
Today’s EUR/USD Signals
- Risk 0.75%.
- Trades must be taken before 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 $1.1805, $1.1828, or $1.1856.
- 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 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 timeframe immediately upon the next touch of $1.1766 or $1.1760.
- 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 EUR/USD analysis yesterday, I thought that if the the EUR/USD currency pair got established above $1.1856, that would be a bullish sign, as this was likely to be the day’s pivotal point.
I was correct in a sense, as the price descended but never even tested that level. I was wrong to be looking to the long side.
The price broke down and found support below $1.1800 and has made quite a convincing short-term bullish reversal, which is now threatening to break above the nearest resistance level at $1.1805. This is despite the firming of the US Dollar yesterday, so it looks like we are getting some strength in the Euro right now.
Despite this short-term bullishness, I still see a bearish outlook due to the medium-term trend, although I am not a strong believer in it. For today at least, I will still be ready to take a short trade from a bearish reversal at either of the two nearest resistance levels. Yet I have to say, the strong bullish reversal below $1.1800 does not fill me with great confidence on the short side.
There is nothing scheduled today concerning the Euro. Regarding the US Dollar, there will be a release of FOMC Meeting Minutes at 7pm London time.
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