EUR/USD Forex Signal

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1309 or 1.1380.
  • 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.
  • 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 Trade  

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1256.
  • 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.
  • 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 I did not see any reason not to remain bearish today, with the U.S. Dollar rising almost everywhere. This was a good call as the price of this pair has continued to fall, and we see new lower resistance now at 1.1309 which is another bearish sign. The price remains within its medium-term bearish channel and there is a long-term bearish trend. These are all good reasons to remain bearish. The only issues are the major U.S. data release due later and the supportive area around 1.1250. I would take a bearish bias today if we get a bearish rejection of the new resistance level at 1.1309 later.

 

EURUSDThere is nothing important due today concerning the  EUR. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm 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.