EUR/USD Forex Signal - 2 January 2019

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Last Thursday’s signals were not triggered, as there was no bearish price action at 1.1439.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered between 8am and 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 1.1547 or 1.1572.

  • 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 1.1429.

  • 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 Thursday that this pair was seeing the price ranging within a consolidation area and still impossible to predict except where there is short-term momentum. This was a good call as the price remained mostly range-bound since them. However, the new month’s market open has seen the price jump up to new significant highs and even almost test the psychologically important 1.1500 level. The market is in strongly risk-off mode which is boosting the Euro as it is a perceived semi-safe haven currency. This suggests that it makes sense to take a bullish bias, but 1.1500 may prevent much more of a further advance for the time being, so be careful.EURUSD

There is nothing of high importance 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.