EUR/USD Forex Signal - 7 February 2018

Wednesday, 7 February 2018 7:59

Yesterday’s signals produced a good, profitable long trade following the bullish pin candlestick which rejected the support level identified at 1.2330 yesterday. It would probably be wise to take profit by now if not done already.

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 1.2330 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 Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2429, or 1.2475.

  • 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 price of this pair has behaved very technically over the past day, and if it respects the bearish trend line shown in the price chart below, that would even more true. As expected, the Euro does well whenever the USD retreats. It is interesting that despite all the enormous volatility and big swings in the U.S. stock market, the Forex market remains relatively quiet.

A break up above the bearish trend line, and even more importantly above 1.2429, would be bullish signs that the long-term bullish trend is getting back on track. There is likely to be a reaction when the price reaches 1.2429 so it should be an interesting level for scalpers to watch. Despite this, market movements are very difficult to predict right now as much will be driven by U.S. Dollar flow which is being affected by turmoil in stocks.EURUSD

There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm 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.

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