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.
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.