EUR/USD Forex Signal: Weak Bullish Double Bottom at $1.1028
My previous EUR/USD signal on 12th August may have produced a very small short trade from the bearish reversal at $1.0931.
Today’s EUR/USD Signals
- Risk 0.75%.
- Trades must be entered prior to 5pm London time today only.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1066, $1.1104, or $1.1140.
- 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
- Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1028, $1.1005, or $1.0986.
- 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.
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1EUR/USD Analysis
In my previous EUR/USD analysis on 12th August, I wrote that as we were seeing bullish lows and firm support, the price was likely to rise over the near term. This was a good call, but it was a little early, as the price did not take off until the next day, and then continued to rise almost to $1.1200.
The price has sold off by quite a lot from that high, enough to call the long-term bullish trend into serious question and probably to shake out many bulls from that trade too.
It looks as if a bullish double bottom has formed as the support level at $1.1028 holds again, but it is very questionable whether this can produce much more upwards price movement.
It may be wise to stay out of the Forex market today as we will get US CPI (inflation) data tomorrow that is likely to trigger major price movement, except for scalps from support or resistance levels.
The best opportunity here will probably be a scalp from $1.1028 long or from $1.1066 short.
There is nothing of high importance due today concerning either the EUR or the USD.
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