EUR/USD Forex Signal - 26 December 2018

Last Monday’s signals were not triggered, as there was no bearish price action at 1.1416.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered between 8am New York time and 5pm London time today.

Short Trade

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1439.

  • 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 1.1334.

  • 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 last Monday that we had quite a messy and range-bound technical picture which suggested that directional moves would be questionable and impossible to predict. I had no directional bias. This was a good call as the price went nowhere. I maintain the same approach today, but I note that we may have the start of a medium-term bearish formation with an “over and under” bearish pattern forming its final leg at a new resistance level of 1.1439.EURUSD

There is nothing important due today concerning either the EUR or the USD. It is a public holiday in Germany, Italy and the U.K., so EUR liquidity should be thin.

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.