EUR/USD Forex Signal - 21 December 2017

By: DailyForex.com

Yesterday’s signals might have produced a losing short trade at 1.1848, yet the bearish price action was weak, so an entry was debateable.

 

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 1.1848 or 1.1829.

· 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 run.

 

Short Trade

· Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1961.

· 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 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

I was wrong yesterday in predicting that 1.1848 was likely to hold. It did for a few hours, but then the price made a strong and significant bullish breakout above both that level and a pretty long-term bearish trend line. On the way up, several new support levels were established, although I am very uncertain about the highest one at 1.1863. The technical picture is now significantly more bullish, and above 1.1900 this pair will be back in a long-term bullish trend.EURUSD

There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of Final GDP data at 1:30pm 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.