EUR/USD Forex Signal

Yesterday’s signals were not triggered, as there was no bearish price action at the resistance levels when they were reached.

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 1.1417 or 1.1445.
  • 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 1.1306.
  • 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 there were good reasons to be bearish, but that I would only take a bearish bias if we got a bearish rejection of the new resistance level at 1.1309 later. This didn’t happen, and then alter when the Chair of the Fed hinted there would be less rate hikes, we saw everything strengthen against the U.S. Dollar, shifting both the fundamental and technical picture here on this pair. The price has broken out of its bearish channel and although the Euro is not especially strong, it looks as if this bullish move is quite likely to run further, although possibly not by a lot.

EURUSD

There is nothing important due today concerning the   EUR. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm 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.