EUR/USD Forex Signal - 27 December 2018

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

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken before 5pm London time today only.

Short Trade

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

  • 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 1.1334.

  • 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 technical picture remained messy and range-bound so I took no directional bias. I did 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, and the major move of the day was downwards, making a low just a few pips above the nearest support level. However, the Euro has subsequently recovered, leaving the price ranging within a consolidation area and still impossible to predict except where there is short-term momentum. This pair is probably best avoided today.

EURUSD

There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm 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.