EUR/USD Forex Signal - 1 February 2018

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

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 1.2388 or 1.2330.

  • 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 1.2500 or 1.2571.

  • 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

Yesterday’s bullish bias was confirmed by two events: the price rising to make a higher high above 1.2450, and the price holding later at the support level identified at 1.2388, almost to the pip. This suggests that the bullish bias should be maintained in line with the long-term bullish trend, although there seems to be less directional conviction. A break below 1.2388 would be a bearish sign. It looks as though the level at 1.2388 is going to be pivotal again, and possible provide another long entry opportunity if reached today.

EURUSD

There is nothing important due today regarding the EUR. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm 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.