My previous EUR/USD signal on 10th December was not triggered.
 

(Click on image to enlarge)

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken before 5pm 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 $1.1800, $1.1821, or $1.1845.
• 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 $1.1769, $1.1746, or $1.1703.
• 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.
 

EUR/USD Analysis

In my previous EUR/USD analysis published on 10th December, I thought that the EUR/USD currency pair was likely to rise over the short term, with $1.1664 being the breakout to watch out for before going long.

This was an accurate call and potentially profitable, but unfortunately the strong bullish breakout did not happen until later in the day, after the London Close.

Turning to the picture now, technically the chart looks flat to weakly bullish.

The price remains within a wide consolidation zone between $1.1700 and $1.1800 on relatively low historical volatility. The bullish bias comes from the higher lows and the way the new support levels are holding, most currently at $1.1669. Provided this level holds, I would take a weakly bullish bias.

A break above $1.1800 would be a more dramatically bullish development.

I would not take any trades until the price reaches $1.1800, which could be a pivotal point to trigger either a long or short trade, depending upon how the price behaves when it reaches that round number.
 

There is nothing of high importance due today regarding either the Euro or the USD.

More By This Author: