My previous EUR/USD signal on 20th February was not triggered, as there was no bearish price action at the resistance levels when they were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today only.
Short Trade Idea
- Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0542 or $1.0610.
- Put 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
- Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.0486, $1.0450, or $1.0442.
- Put the stop loss 1 pip below the local swing low.
- 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
In my previous EUR/USD analysis last Thursday, I wrote that the EUR/USD currency pair was hard to predict but the resistance at $1.0442 looked likely to be pivotal.
This was OK in the short term, but a day later this level was not important at all.
Both currencies in this pair are pretty aimless, with neither really in the market’s focus right now – the Forex market is mostly about the Japanese Yen. Technically the price has had a weak bullish bias over recent days, but it is weak – the price may have made a bearish double top at the highs, as shown in the price chart below. So, a continuation of the dominant range is quite likely, but the support level close by below at $1.0486 does look clean and solid.
I think the best opportunity which might set up here today would be a long scalp from another touch and bounce off the support at $10486, but be conservative with taking profit.
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