EUR/USD Forex Signal - 24 January 2019

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Yesterday’s signals were not triggered, as there was no bearish price action when 1.1387 was reached.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered before 5pm London time today.

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1425, 1.1455, or 1.1486.
  • 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 Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1378, 1.1372, or 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 the downwards trend was looking less reliable and this was a good call, as the price broke up and printed new higher support. However, these support levels look relatively doubtful and may already be in the process of becoming invalidated. Furthermore, there is some very high-impact news due in a few hours concerning the Euro which could push the price all over the place, which leads me to see the levels at 1.1378 and 1.1372 as likely to not be useful.

The price has really been consolidating this week and it would probably make sense to wait for more information on direction after the ECB release due later before entering any trades in this currency pair.

gbpusd

There is nothing of high importance due today regarding the USD. Concerning the EUR, there will be a release of the ECB’s Main Refinancing Rate at 12:45pm London time followed by the usual press conference 45 minutes later.

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.