EUR/USD: Euro is relatively weak
Yesterday’s signals were not triggered, as the price never reached 1.0900.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 5pm London time today only.
Short Trade Ideas
-
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0843 or 1.0923.
-
Put 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 Idea
-
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0710.
-
Place 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.
-
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.
Take advantage of recent volatility with the world’s most popular pair.
EUR/USD Analysis
I wrote yesterday that I thought that short trades would have more profit potential so I would look for a short trade following a bullish retracement to 1.0900 or 1.0923 following by a bearish reversal. However, I also thought there would be better trading opportunities elsewhere.
The price never made it back to the 1.0900 level, but I was right to look to the bearish side, as the Euro is weak, and the price has continued to decline. It is technically significant that we are seeing a break below 1.0800. We also have new lower “flipping level” resistance at 1.0843.
I think the price is likely to fall further over the coming days to at least 1.0750 and perhaps further, even to the support level at 1.0710.
I will take a bearish bias if we get a retracement to 1.0843 and a bearish reversal there.
Concerning the EUR, there will be a release of French Flash Services & Manufacturing PMI at 8:15am London time, followed by the German counterparty 15 minutes later. Regarding the USD, there will be a release of Unemployment Claims at 1:30pm followed by Flash Manufacturing PMI at 2:45pm.
