EUR/USD Forex Signal - 8 March 2018

Yesterday’s signals produced a short trade following the bearish engulfing candlestick’s rejection of the resistance level identified at 1.2436. The trade gave the minimum of 20 pips of profit before returning to breakeven to be stopped out.

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 1.2436, 1.2459, 1.2500, or 1.2524.

  • 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 1.2390 or 1.2369.

  • 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 wrote yesterday that the signs were all bullish yet pointed out that there were several key resistance levels close by clustered at and mostly below the big round number at 1.2500. This was a good approach, as the price did rise but was unable to get above the first resistance level at 1.2436. The price is now consolidating between the new, higher support at 1.2390 and that resistance level, as key central bank input from the ECB is awaited, plus key U.S. non-farm payrolls data tomorrow. I have a bullish bias due to the long-term bullish trend, yet the price could easily make a strong bearish move.EURUSD

Concerning the EUR, there will be a release of the ECB’s Minimum Bid Rate at 12:45pm London time, followed 45 minutes later by the usual press conference. There is nothing important due regarding 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.