EUR/USD Forex Signal - 27 November 2018

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Yesterday’s signals produced a profitable short trade following the bearish rejection of the resistance level at 1.1380. This trade has the trend behind it, so it may be worthwhile leaving any profit to run.

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 1.1380 or 1.1417.
  • 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 Trade  

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1256.
  • 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 wrote yesterday that as long and medium-term trends were bearish, with the medium-term trend evidenced by the bearish price channel shown in the chart below. I would be happy to take a bearish bias if we saw a clear failure to rise higher at any nearby key resistance levels. We got this at 1.1380 and the price has fallen from here in a healthy bearish wave, and the action still looks quite bearish, so this was a good call.

I do not see any reason not to remain bearish today, with the U.S. Dollar rising almost everywhere.

eurusd

There is nothing important due today concerning the  EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

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.
Learn more from Adam in his free lessons at FX Academy