EUR/USD Forex Signal - 23 August 2017

Yesterday’s signals were not triggered as there was no bullish price action when the price reached 1.1775.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be taken from 8am to 5pm London time today.

Long Trade 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1715.
  • 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 Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1838 and 1.1775.
  • 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

I wrote yesterday that the test of the (renewed) bullishness would be whether the price can hold up above 1.1775, or whether instead it will fall back below the broken upper channel trendline and into its old zone of comfort. In fact, the price not only broke back below 1.1775, but that level now seems to have flipped to become new resistance, which is a bearish sign.

There is a long-term bullish trend, but the price is truly just consolidating in the prevalent market conditions. There probably will not be any change to this situation today.EURUSD

Concerning the EUR, the President of the European central Bank will be speaking at a conference at 8am London time. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm.

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.