EUR/USD Forex Signal - 29 January 2018

Last Thursday’s signals were not triggered as the bearish price action took place slightly above the resistance level identified at 1.2500. However, the levels given held accurately for most of the day.

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 1.2359, 1.2330, or 1.2272.

  • 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 1.2500.

  • 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 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

The Euro rose sharply last Thursday following the ECB input, in line with its bullish long-term trend, but it then sold off strongly above 1.2500, which is an important psychological round number. The price rose again and again failed just below 1.2500, which started a retracement process. The price is now close to the nearest key support level, where a bullish bounce is reasonably likely and would be in line with the long-term trend.EURUSD

There is nothing important due today concerning either the EUR or the USD.

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.