EUR/USD Forex Signal - 7 March 2018

Yesterday’s signals were not triggered, as there was no bearish price action at 1.2369.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken between 8am and 5pm London time today only.

Short Trades

  • Short trade entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2436, 1.2459, 1.2500, or 1.2524.

  • 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.

Long Trades

  • Long trade entry following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.2390 or 1.2369.

  • 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.

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 wrote yesterday that 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. This is what happened and towards the end of the day even though the pace of the advance slowed, it formed a bullish pennant pattern and as the European open approaches, the price continues to make new highs. The signs are all bullish, yet there are several key resistance levels close by clustered at and mostly below the big round number at 1.2500. If the price continues to advance strongly through these levels, it would be an extremely bullish sign. There is no reason not to be bullish on this pair but be aware we are getting close to 1.2500.

EURUSD

There is nothing due today concerning the EUR. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 3:30pm.

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.