EUR/USD Forex Signal: Aimless Consolidation

two 10 and 20 banknotes on floor

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be entered prior to 5pm London time today only.

Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2200, 1.2227, or 1.2277.
  • 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 entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2147, 1.2112, or 1.2060. 
  • 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

I wrote last Monday that action was very flat, so I was not really interested in trading this currency pair.

I thought scalping off the key levels might have been the best approach, but this would not have been very fruitful.

I was correct to stand aside from this pair as it has moved very little this week and just consolidated.

Unfortunately for traders, this flat, aimless consolidation is likely to persist today. However, the FOMC release due later towards the end of the New York session is likely to inject some volatility and maybe also directional movement into the U.S. dollar, so it could become more interesting to trade after that point.

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