EUR/USD Forex Signal

Yesterday’s signals produced a profitable short trade following the bearish reversal at the resistance level of 1.1417.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trades  

  • Short entry following a bearish price action reversal on the H1 time frame  immediately upon the next touch of 1.1417 or 1.1445.
  • 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 Trades  

  • Long entry following a bullish price action reversal on the H1 time frame  immediately upon the next touch of 1.1306 or 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 the rise did not look very strong, so a short trade following a clear rejection of the next resistance level still looked as if it could be a good trade which may set up later. I had no directional bias apart from that. This was a good call as the price turned nicely at 1.1417.

The Euro is weakened to some extent by the very weak British Pound, but it still looks as if the price will struggle to break below this supportive area stretching between about 1.1306 to 1.1250. The most likely scenario is that the price will continue to trade between 1.1306 and 1.1417 so we may see a gently bullish swing next. Beyond that observation, I have no directional bias today on this pair.

EURUSD

There is nothing important due today concerning either the  EUR or the USD. The President of the ECB will be giving a minor speech at 8:30am 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.