EUR/USD: Support at 1.0814 looks strong and pivotal
Last Thursday’s signals were not triggered as there was no bearish price action when the resistance identified at 1.0817 was hit that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0887 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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0817.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even nce 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 last Thursday that the price was holding below the new lower resistance level at 1.0814 and this was a bearish sign. I took a bearish bias again on this currency pair as long as we kept getting hourly closes below 1.0814.
This was not a great call as the price spent the day rising and eventually broke up above 1.0814 to get established above new support at 1.0817.
The price action is weakly bearish over the short-term, and over the medium and long-terms we have perhaps a weak bearish trend. However, the support level at 1.0817 does look strong, so the price may not be able to break below it.
I would be prepared to take a long trade from a bullish bounce at 1.0817, or alternatively I will take a bearish bias if we get two consecutive hourly closes today below that level. A short from 1.0887 also looks acceptable if the price gets up there later.
There is nothing of high importance due today concerning either the USD or the EUR.