EUR/USD Forex Signal - 6 February 2018

Yesterday’s signals were not triggered, as there was no bullish price action when potential support levels were reached.

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, 1.2429, 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 did not work out. It was a good day for the U.S. Dollar everywhere, which is benefiting from strong selling in the U.S. stock market. However, the Euro held up a little better than other major currencies. Despite that, the price still fell clearly, breaking firmly below two support levels which now look to have been flipped to become new resistance. The long-term bullish trend is still in force, but the price really needs to get above 1.2429 before bulls can be confident again. It is difficult to make a forecast for today due to the very high volatility we are seeing in stock markets. The best that can be said is that if the U.S Dollar is sold strongly today, the Euro should be one of the stronger currencies to benefit from that.

EURUSD

There is nothing 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.