My previous EUR/USD signal last Thursday was not triggered.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 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 $1.1640, $1.1662, or $1.1672.
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 $1.1600, $1.1551, or $1.1543.
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.
In my previous EUR/USD analysis last Thursday, I thought that the EUR/USD currency pair was looking more bearish. I saw the price as likely to head for the $1.1550 area where a bullish bounce was likely to happen. I was wrong about the price making it as low as that, but the long of the day at the low of the day was only a few pips above that level.
The price chart below shows that a bearish trend, albeit a disorderly one, has dominated the price action over recent weeks. We have just seen a pop higher, which has produced an interesting structure, with the chart clearly showing a strong bearish head and shoulders pattern which will complete if the price can break below $1.1600.
As $1.1600 is a round number and a horizontal support level, I think this level will likely be very pivotal today. If it holds, I am not sure there will be a lot of scope for profit on the long side, maybe just a few pips to scalp.
A breakdown below $1.1600 could see the price fall further quickly to $1.1550.
There is very important US data due shortly before the start of the New York session, and this data is likely to dominate what happens next here. I doubt any of the support or resistance levels will break convincingly before that data release happens.
There is nothing scheduled today concerning the Euro. Regarding the US Dollar, there will be a release of CPI (inflation) data at 3pm London time.
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