EUR/USD Forex Signal - 18 April 2018

By: DailyForex.com

Yesterday’s signals were not triggered, as the bullish price action very close to 1.2347 did not finalize the turn until London closed.

 

Today’s EUR/USD Signals

Risk 0.75%.

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

 

Short Trade

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2436.

* Place 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.

* 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 entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2343 or 1.2304.

* Place 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.

* 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 I wrote that I had a weak bullish bias, and that the resistance at 1.2390 was more likely to break instead of holding. I was partially correct: the resistance level did break, and was invalidated, but the price then turned around and pulled back quite strongly. However, the next support level, although it was wrong by a few pips, did hold, and the price has moved up from there. This leaves the pair in a mixed situation: we may now have a lower swing high forming at 1.2380, which could signal a downwards movement. If the price breaks below the support at 1.2343 it would be likely to signal a deeper pull-back within the long-term bullish trend. I have no directional bias today.

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 Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.