EUR/USD: Supportive area near 1.0820
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 5pm London time today.
Short Trade Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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.
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
I wrote yesterday that I preferred short trades, but I did not see any good chance of a bearish breakdown happening today. This meant that it would make sense to wait for a pullback to resistance. The nearest resistance level was never reached, but the bearish inside candlestick at about 1.0880 would have provided a profitable entry opportunity, so my call yesterday was on the right track, and also correct about the lows not being ready to break down yet.
The technical picture is more bearish, and it is possible that we may get a breakdown today. Stock markets are falling on increased fear following yesterday’s wild crude oil selloff, and the Japanese Yen and U.S. Dollar are the strongest currencies, with the Euro showing long-term weakness, so the environment may be correct for a fall down to at least the big quarter-number below at 1.0750. However, it would not surprise me if the 1.0800 or 1.0820 level holds again today.
I take a basically bearish bias, but I still prefer trading pullbacks to any breakdown.
There is nothing of high importance due today concerning either the EUR or the USD.