EUR/USD Forex Signal - 5 February 2018

Last Thursday’s signals were not triggered, as none of the key levels were reached during the specified time.

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 1.2428, 1.2388 or 1.2330.

  • 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 1.2571.

  • 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

Last week’s bullish bias has again been confirmed, this time by three events: the price rising to make a higher high above 1.2500, the price holding again at the support level identified at 1.2388, almost to the pip, and the price printing a higher support level at 1.2428. This suggests that the bullish bias should be maintained in line with the long-term bullish trend. It is notable that the Euro is looking stronger than the British Pound too. I am not strongly confident of the support level at 1.2428, preferring 1.2388.EURUSD

Concerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time. Regarding the EUR, the President of the ECB will be testifying before the European Parliament at 4pm.

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.