EUR/USD Forex Signal: Found Support At $1.0758

Today’s EUR/USD Signals

  • Risk 0.75%.
  • Trades may only be taken prior to 5pm London time today.

(Click on image to enlarge)

EUR/USD Signal Today - 11/06: Support at $1.0758 (Chart)

 

Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0784, $1.0834, or $1.0856.
  • 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 $1.0758, $1.0722, or $1.0709.
  • 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 analysis of the EUR/USD currency pair on 20th May, I wrote that the technical picture had become more bullish, with the Euro one of the strongest major currencies. I thought that there may be a chance for a long trade from a bounce at the support level at $1.0863 but this did not set up. I also said there were better assets to trade that day, and that certainly turned out to be true.

The technical picture now is more bearish, but not decisively so. The price was basically consolidating within a predictable range until the shock of Sunday’s calling of a general election in France following terrible EU Parliament election results for President Macron’s party. Macron has no majority in the French Parliament, so he is gambling that the far-right’s very strong showing last weekend might galvanise more centrist voters into voting for Macron again. However, the polls show the far right as likely to assume power, which would be a major political earthquake in France and the EU and will impact the Euro negatively if it happens.

These political events caused the Euro to plummet yesterday, before finding some support above $1.0700 and especially at the key support level at $1.0758 which seems to be holding as the first higher low. The key thing to watch for now is whether this level, let’s call it $1.0750 as that is a confluent major quarter level, holds up over the course of the day. The longer it holds, the more likely we are to see a continued recovery.

The Euro will now come into focus as a currency over the next few weeks and will probably show a higher level of volatility. Although the major far right party in France no longer support an exit from the EU, the Euro will likely trade lower the more polls show it on course for victory.

I think we will eventually see more downwards movement here, although that may be determined over the short term by the US Dollar and its key CPI and FOMC data coming tomorrow.

I think the best approach here is to look for short trades from and failed tests of key resistance levels, and to hold for a swing or even position trade if possible.

There is nothing of high importance scheduled today concerning either the EUR or the USD.


More By This Author:

BTC/USD Forex Signal: More Bearish Consolidation
GBP/USD Forex Signal: Remains Bullish Above $1.2750
AUD/USD Forex Signal: Bearish Head And Shoulders Pattern Completing?

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