EUR/USD Forex Signal - 8 August 2018

Yesterday’s signals were not triggered, as there was no bearish price action at 1.1571 or 1.1602.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1630 or 1.1677.

  • 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.

  • 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

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1609, 1.1584, or 1.1571.

  • 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.

  • 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 took a bearish bias yesterday, and this worked out fairly well, with the price falling during the first part of the London session to new lows before recovering later. There is a new, lower resistance level at 1.1571. There is a long-term bearish trend. The final part of the Asian session sees the price trying to rise, and it looks as if 1.1571 will be the pivotal level today. Therefore, I would like to see a failure to break above this level during the early part of the London session, which would make me take a bearish bias if the price begins to move down from there. The long-term bearish trend is another reason to be bearish today.EURUSD

There is nothing important 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.