EUR/USD Forex Signal - 18 July 2016

EUR/USD Signal Update

Last Thursday’s signals gave a losing short trade following the pin candle rejecting the identified resistance at 1.1120.

Today’s EUR/USD Signals

Risk 0.75%

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

 

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1025 or 1.0900.

  • 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.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

 

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1170 or 1.1234.

  • 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.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

EUR/USD Analysis

The situation with this pair remains the same: range bound with no long-term trend. In fact looking at a long-term chart shows a very solid consolidation around 1.1000.

The positive impact of this is that it becomes possible to trade clearly identified support and resistance levels in both directions as they tend to hold, albeit such trades achieve only relatively small profit targets.

The chart below shows how the support at 1.1025 held again on Friday. The price is now bumping up against resistance at 1.1120 but I am not looking to take a short trade there just. I prefer to wait for 1.1170.

A breakout from the 1.1025 – 1.1170 range could be interesting.EURUSD

There is nothing due today concerning either the EUR or the USD.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.