EUR/USD Forex Signal

Yesterday’s signals were not triggered as none of the key levels were ever 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 as the Euro remained relatively weak, it was unlikely to penetrate above the nearby resistance level. If this rally against the Dollar turned around, we could see a good short trade opportunity here. This call was OK, the price did remain below the resistance level above 1.1400. A rally in favour of the U.S. Dollar has not happened yet, so although the price remains close to the middle of its current zone between support and resistance, it still looks more likely to rise than fall. However, the rise does not look very strong, so a short trade following a clear rejection of the next resistance level still looks as if it could be a good trade which may set up later. I have no directional bias apart from that.EURUSD

There is nothing important due today concerning either the EUR or the USD.

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.