EUR/USD Forex Signal: More Bullish Above $1.1104
My previous EUR/USD signal on 10th September 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 entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1104 or $1.1140.
- 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
- Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1066, $1.1028, or $1.1005.
- 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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1EUR/USD Analysis
In my previous EUR/USD analysis almost one week ago, I wrote that it looked as if a bullish double bottom had formed as the support level at $1.1028. However, I was ready to take a scalp from either support or resistance. This wasn’t a helpful call, but it was enough to keep out of trouble.
The price has been rising over recent days as the minor rally we saw in the US Dollar after higher-than-expected US CPI (inflation) data was released last week petered out, and the long-term bearish trend in the greenback reasserted itself. The CME FedWatch tool now shows a majority expect a large rate cut of 0.50% by the Federal Reserve this Wednesday.
The weaker US Dollar which we are seeing now – in fact it has been the weakest major currency since this week began – is helping keep the price action bullish here, although the Euro is not really strong so it’s a muted bullishness right now.
Bulls are currently stuck right at the resistance level of $1.1104. It looks as if bulls will succeed in breaking this level, which could be a good long trade entry signal. If there are two consecutive higher hourly closes above that level, with no significant upper wicks, and this happens relatively early in the London session, it could be a good long entry signal.
There is nothing of high importance due today concerning either the EUR or the USD.
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