EUR/USD Forex Signal

Wednesday, 20 December 2017 7:04

By: DailyForex.com

Yesterday’s signals produced a losing short trade following the bearish pin candle rejecting the resistance level at 1.1812.

 

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered before 5pm London time today.

 

Long Trades

· Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1779 or 1.1750.

· 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 ride.

 

Short Trade

· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1848.

· 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 off 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 was wrong yesterday in predicting that fading the extremities would be the best approach to trading this pair. This initially looked correct when the price rejected the nearest resistance shortly after London opened, but then the market turned around and broke upwards bullishly and reached the next resistance level at 1.1848 during the Asian session. This level has held so far, firmly, suggesting we might get a downwards movement today. That would be supported by the overall technical picture, as the price is near the top of a medium-term wide bearish channel. If the price is below 1.1810 by 9am London time, it is likely to continue down to 1.1779. There is no long-term trend in this pair and I have no directional bias.


EURUSD

There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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