Bullish in doubt below $1.10 as dollar strengthens.
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My previous signal EUR/USD 12Thursday July it was not triggered as the bullish price action unfortunately took place a little below the support level identified at $1.1026.
Risk 0.75%.
Trades can only be entered between 8am and 5pm London time today.
- After the reversal of the bearish price action in the H1 time frame, go in short immediately after the next touch of $1.1089 or $1.1150.
- Place a stop loss 1 pip above the local swing high.
- Move the stop loss so that it breaks even after the trade reaches a profit of 20 pips.
- Remove 50% of the position as profit when the price reaches 50 pips in profit and keep the rest of the position in the account.
- After a bullish reversal of price action in the H1 time frame, go long for another touch of $1.1014 or $1.0973.
- Place a stop loss 1 pip below the local swing low.
- Move the stop loss so that it breaks even after the trade reaches a profit of 20 pips.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and keep the rest of the position in the account.
The best method to identify a classic “price action reversal” is to close an hourly candle, e.g pin bar, doji, outdoor or even just an absorbing candle with a higher close. You can use these levels or zones by tracking price action which occurs at given levels.
In my previous analysis currency pair EUR/USD on the 12Thursday I wrote that in July
the best opportunity likely to occur in this currency pair today would be a bullish rebound at the support level after the CPI data release, which would provide a good opportunity to enter a long-term trade.
I was right to look on the long side, as a dovish surprise in US CPI falling to 3.0%, even below the consensus forecast, saw a strong sell-off in the US dollar, sending the price of the currency pair up dramatically.
The price then jumped to new multi-month highs above $1.1250, but then saw what appears to be a very solid bearish reversal from that price area, and that decline accelerated today on worse-than-expected economic data from the Eurozone, making the euro the weakest major currency today.
Technically, a break below the former support level at $1.1089 is a bearish sign, although the price is currently in danger of retracing above this level. Bulls shouldn’t get too excited about this as there may be some obvious resistance up to $1.1125 and even higher than that.
The only potentially good opportunity I see here today is a potential short trade from two consecutive lower hourly closes below $1.1070 after the New York open. Anyone not in this area should look to take profits once the price reaches $1.1025 as I expect to see some initial support as the price approaches the huge round number of $1.1000.
As for the USD, manufacturing and services PMI data will be released at 14:45 London time. There is nothing important about the EUR today.
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