EUR/USD Forex Signal - 14 August 2017

Last Thursday’s signals were not triggered as the bullish price action took place below the support level identified at 1.1723.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken from 8am until 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 1.1785 or 1.1723.
  • 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.

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1837.
  • 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.

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

Following last week’s deep pull back to the 1.1700 area, the price has risen from there, and printed new support at 1.1785. Above, there is a confluence of a trend line and horizontal resistance at 1.1837 which has kept the price from rising any further. The Euro remains one of the stronger currencies, so much will depend upon the U.S. Dollar: if it weakens significantly, we can expect this pair to continue to rise and break above 1.1837, although it is quite probable that this will not happen before the FOMC release due during Wednesday’s New York session. In the meantime, a range between 1.1700 and 1.1837 is likely to become established.

There is still a long-term bullish trend which is likely to resume soon.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.