EUR/USD: Price looks set to move beyond multi-month high at 1.1153
Yesterday’s signals were not triggered, as neither of the key levels identified as support and resistance were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1251.
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.
Long Trade Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1089 or 1.1056.
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 I remained bullish as the price had plenty of room left to rise to the next area of strong resistance which was probably located at the psychologically important major quarter-number at 1.1250.
I wanted to take a long trade if we had gotten a bullish bounce following a retracement to 1.1089, or if the price closes at the end of today’s New York session above 1.1142.
Neither of these set-ups happened.
I was correct to be basically bullish, as although the price has gone sideways, the price chart below suggests that this has been a bullish consolidation.
Higher prices here are likely to happen soon. Therefore I take exactly the same approach today as I took yesterday – I will be prepared to enter a long trade if we get a New York close later at or above 1.1142, or if we get a bullish bounce at the support level at 1.1089.
There is nothing of high importance due today concerning either the EUR or the USD – it is a public holiday in Italy today.