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I take a weak bearish bias, as recent price action is more clearly showing higher lows than lower highs.
My previous EUR/USD signal on 1st August was not triggered, as there was insufficiently bearish price action when the resistance level at $1.1038 was first reached that day.
Risk 0.75%.
Trades may only be entered prior to 5pm London time today.
- Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1038, $1.1078, or $1.1089.
- Place 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 50 pips in profit and leave the remainder of the position to ride.
- Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.0963, $1.0938, or $1.1038.
- Place the stop loss 1 pip below the local swing low.
- 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.
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.
In my previous analysis of the EUR/USD currency pair, I wrote that bullish and bearish influences were mixed, and that the best potential trade which might set up would be a short entry following a bearish rejection of the resistance level at $1.1006.
I was correct to look to the short side during the London session, as the price dropped, but I was wrong about the reversal’s level, which took place above $1.1006.
The technical picture now shows a consolidation between $1.0910 and $1.1038, with the resistance at $1.1038 looking very strong – it is likely to be a large option barrier.
I simply think that any reversals which look solid from any key support or resistance level will look like a good day trade today, and the consolidation range is likely to hold.
I take a weak bearish bias, as recent price action is more clearly showing higher lows than lower highs.
There is nothing of high importance due today concerning either the EUR or the USD.
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