After a series of strong performances from the US dollar, traders have finally started seeing consistent gains over the last few hours.
The previous EUR/USD signal from July 9 wasn’t activated.
Today’s EUR/USD Signal
Risk is set at 0.75%.
Trades need to be entered by 5 PM London time today.
Short Trade Ideas
- Short after the next touch at $1.1630, $1.1667, or $1.1727, followed by a swift reversal on the H1 time frame.
- Set a stop loss one pip above the local swing high.
- If the trade gains 20 pips, make sure to adjust the stop loss accordingly.
- Upon reaching 20 pips profit, take 50% of the position as profit and adjust the stop for the remaining share.
Long Trade Ideas
- After the next touch at $1.1586, $1.1574, or $1.1569, a quick reversal on H1 can suggest a long position.
- Place a stop loss one pip below the local swing low.
- As with shorts, if you gain 20 pips, don’t forget to adjust the stop loss.
- Withdraw 50% of your position as profit at 20 pips and move the stop for the rest.
The best method to spot a classic “price action reversal” is to observe hourly closes, such as pin bars, dojis, and nearby higher candles. It’s beneficial to watch price actions at these levels.
EUR/USD Analysis
In a previous analysis from a week ago, the EUR/USD pair appeared to shift from bearish to bullish, particularly after hitting a high of $1.1700. I had noted that $1.1731 could be a significant level.
That prediction held well during the London session as prices neared that resistance, suggesting a potential short scalp. The price ultimately exceeded that level, confirming my earlier analysis on high-lows.
Despite the positive trend the following day, prices fell back below $1.1731, indicating a return to a medium-term bearish outlook. This shift points to the Fed’s urgency to cut interest rates, largely due to the strong US dollar’s influence, which drives prices down and maintains a pattern of lower lows and highs.
We noticed a notable drop yesterday, but there’s been a slight recovery around the $1.1600 mark recently.
Staying below $1.1500 consistently is crucial and could unsettle trend traders holding long positions. While the bearish outlook is supported by various factors, clusters of support starting at $1.1586 may offer a solid base; I believe a long trade from a bullish bounce at that level could present an excellent buying opportunity.
There’s no significant news regarding the Euro today. As for the USD, PPI data is set to be released at 1:30 PM London time.
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