(MENAFN- Daily Forex) My previous EUR/USD signal on 5th
February
was not triggered as the bullish price action unfortunately took place just below the support level which I had identified at 0726's EUR/USD Signals
Risk 0.75%. Trades may only be taken between 8am and 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0798, $1.0807, or $1.0864. 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 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.0744, $1.0726, or $1.0653. 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.
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In my previous analysis of
the EUR/USD currency pair
one week ago, I wrote that the technical picture had become notably more bearish, with the price chart showing that the price was moving down within a wide but symmetrical descending
price channel . I also noted a profit target of a short trade at $1.0726.
This was an excellent call, as the price moved down over the day to exceed that target by just a couple of pips, before reversing bullishly at $1.0724, printing a bullish
double bottom pattern . The price has been rising from there ever since, although nor especially strongly.
The Euro has been the strongest major currency since this week opened in Asia earlier today. The USD is not doing much as it consolidates ahead of tomorrow's US CPI (inflation) data release. So, it is quite likely that today's price action here will depend upon the Euro.
Technically the rise is a bit weak, but it is there. There is a small zone of resistance centred on the round number at $1.0800 which is likely to be today's pivotal area.
If we see two consecutive higher hourly closes during the first half of today's London session above $1.0820, the price could advance to $1.0864.
A bearish reversal at $1.0864 could be an excellent short trade entry signal, as it looks likely to be a reliable resistance level and is confluent with a well-established descending trend line.
There is nothing of high importance due today regarding either the EUR or the USD.
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