US Dollar continues to strengthen.
My EUR/USD signal on 8th February was not triggered, as none of the key support or resistance levels were reached that day, although the high was just a few pips below $1.0766.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0732, $1.0747, or $1.0802.
- 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 50 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 timeframe immediately upon the next touch of $1.0662, $1.0602, or $1.0575.
- 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 analysis on 8th February of the EUR/USD currency pair, I thought that we would see
a bullish recovery continuing after the previous day’s low, but I expected that the price would remain between $1.0692 and $1.0766 over the day. It did, so this was a good call.
The technical picture has become more bearish as the US Dollar continues to strengthen mildly, advancing against most other currencies. However, it is worth noting that the Euro is one of the relatively stronger currencies, holding up pretty well against the greenback, so the price in this pair is falling more slowly than we see in other currency pairs. This suggests that if the US Dollar were to weaken, it could be interesting to be in a long trade in this pair.
The price seems to have made a new “role reversal” support level at $1.0662 which it bounced off a few hours ago. There is no strong trend but a general strength in the Dollar makes it hard to be convinced of a long trade. It is difficult to see what might change that sentiment today.
For these reasons I think the best trades in this currency pair will be scalps from any reversal of any key support or resistance level.
I do not have any directional bias, but I think that the support at $1.0662 is likely to be today’s pivotal point – if it breaks down convincingly, the price could fall quickly to the next support level below it at $1.0602.
Regarding the USD, there will be a release of Flash Services PMI data at 2:45pm London time. There is nothing of high importance due today concerning the EUR.
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