EUR/USD Forex Signal

Tuesday, 30 January 2018 8:19

Yesterday’s signals were not triggered, as there was no bullish price action at 1.2359.

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 1.2330, or 1.2272.

  • 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 Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2388 or 1.2500.

  • 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 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

We finally had the first day in a long time where “risk off” currencies such as the U.S. Dollar and the Japanese Yen outperform more “risk on” currencies, though that is partially an oversimplification. What matters is that the Euro and Pound are now experiencing deep pullbacks within their strong bullish trends. We have seen a new resistance level form from previous support, and the current price action at the time of writing during the late Asian session suggests that the price is going to fall further today. That does not mean the trend is over. I have a short-term bearish bias and a long-term bullish bias on this pair.EURUSD

Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time. There is nothing important due today concerning the EUR.

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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