The technical picture now suggests that the near-term price action will be choppy and hard to trade, as we have seen this kind of movement over recent days, and as we have quite a few support and resistance levels nearby.

My previous EUR/USD signal on 8^th August produced a profitable long trade from the bullish bounce at the support level of $1.0938.
 

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be entered between 8 am and 5 pm London time today only. 
 

Short Trade Ideas

• Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0943, $1.0960, or $1.0976.
• 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 50 pips in profit and leave the remainder of the position to run.
   

Long Trade Ideas

• Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.0900 or $1.0868.
• 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 analysis of the EUR/USD currency pair, I wrote that we were seeing a consolidation between $1.0910 and $1.1038, with the resistance at $1.1038 looking very strong. I took a weak bearish bias but was ready to trade any reversals at a key level. This was a good call, as the best trade of the day was a long from the support level at $1.0936.

The technical picture has become a little more bearish since then, as we have seen the US Dollar rally and make a bullish breakout from a long-term narrowing wedge chart pattern.

However, it is worth noting that the Euro has held up relatively well against the Dollar compared to other major currencies, so it is showing some relative strength.

The technical picture now suggests that the near-term price action will be choppy and hard to trade, as we have seen this kind of movement over recent days, and as we have quite a few support and resistance levels nearby.

However, the support level confluent with the round number at $1.0900 does look strong, so I think a long scalp from a bullish bounce at this level is likely to be the best opportunity that might be set up in this currency pair today.

(Click on image to enlarge)

There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of the FOMC meeting minutes at 7pm London time.

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