EUR/USD Forex Signal - 6 March 2018

Yesterday’s signals produced a profitable long trade from the bullish rejection of the support level identified at 1.2285. The price is still moving up but a plan to take at least partial profits soon should be put in place for any open position.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered before 5pm London time today.

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2369 or 1.2436.

  • 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.

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2285.

  • 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.

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

I was watching and waiting yesterday to see what happened if, as was likely, any key levels were reached. This paid off insofar as the price bounced very convincingly at the support level identified at 1.2285 and moved up firmly, being the major movement of the day of all the three major Forex currency pairs. The advance is now faltering just below the key resistance at 1.3269 which is also confluent with a trend line, so it might be expected to be strong resistance. A break up above 1.2369 would be a strongly bullish sign and suggest that the long-term bullish trend was truly getting back underway.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.