EUR/USD: Ranging price action
Yesterday’s signals were not triggered, as the price never reached 1.0923.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today.
Short Trade Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0900.
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.
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
I wrote yesterday that the technical picture had become more bearish, and it was possible that we would get a breakdown. However, I also that that either the 1.0800 or 1.0820 levels could hold again for another day.
As it turned out, the supportive area at around 1.0820 did hold again, so we are basically seeing a consolidation play out between 1.0900 and 1.0820.
There is little going on with this pair. I think that short trades will 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. Meanwhile, there are probably going to be better opportunities in other currency pairs.
There is nothing of high importance due today concerning either the EUR or the USD.