EUR/USD Forex Signal - 10 October 2017

Yesterday’s signals were not triggered, as none of the key levels were reached yet.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered between 8am and 5pm London time today.

Long Trade 1

  • Long entry following a strong bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1650.
  • 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.
  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1788 or 1.1838.
  • 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.
  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

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

Despite yesterday’s public holiday in the U.S.A. it was a significant day for this pair, as the price is showing signs that the medium-term bearish trend has ended. There has not yet been a major higher low, so the pattern of lower lows is still broadly in force, but the rise in recent hours has been strong. It now looks as if the nearest resistance level at 1.1788 will soon be tested. A break above that level will be a bullish sign, especially if confirmed by a subsequent key higher low. Alternatively, if the price now fails at 1.1788 and turns bearish, particularly if this is early in either the London or New York sessions, it will most probably begin to fall.
EURUSD

There is nothing significant 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.