EUR/USD Forex Signal

Yesterday’s signals produced a short trade following the bearish pin candlestick which rejected the resistance level at 1.1417, but it only made the minimum 20 pips of profit.

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 1.1395.

  • 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 the price action from 1.1359 was bullish and suggested we were quite likely to see the price rise further. However, I was very nervous of the current state of the Forex market, so I have no directional bias on this currency pair today. Overall this was a good call, as the price rose to the nearest resistance level which was quite close by, before falling back.

The situation is even less clear today, with support and resistance levels close by and mostly ranging price action. There will also be thin liquidity later due to the U.S. public holiday, so again I have no directional bias on this pair. The price is likely to consolidate quietly.EURUSD

There is nothing important due today concerning either the EUR or the USD. It is a public holiday in the U.S.A. today.

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.