My previous EUR/USD signal on 10th June was not triggered.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Short Trade Ideas
- Short trade entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1569 or $1.1671.
- 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
- Long trade entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1481 or $1.1408.
- 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 one week ago, I thought that the EUR/USD currency pair was threatening to break down below the bearish head and shoulders neckline at $1.1361 if the US Dollar Index key support held. It did not hold, and the price rose to a new multi-month high instead of falling.
The technical picture has recently been bullish as the US Dollar continued to drop to new long-term lows, but the price has now retreated and is threatening to complete another bearish head and shoulders chart pattern, with the second shoulder forming as a rejection of the resistance level at $1.1569.
So, $1.1569 looks very likely to be pivotal. I would be comfortable entering a new long trade if the price gets firmly established above that level, but not before that.
Right now, the price action looks bearish, rejecting $1.1569.
I do not see the Iran/Israel war and possible US involvement having a big impact upon this currency pair. If the US does join in the attack on the Iranian nuclear program, it might boost the Dollar with a minor risk-off sentiment effect.
There is nothing of high importance due today regarding either the Euro or the USD.
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