EUR/USD Forex Signal - 28 January 2019

|

Last Thursday’s signals were not triggered.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trades

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

  • 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 Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1378, 1.1372, or 1.1350.

  • 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 last Thursday that the levels at 1.1378 and 1.1372 would probably not be useful as the ECB release due later could push the price anywhere. This was a good call as the price swung down then up strongly. The picture now is slightly more bullish, but the problem is that both of these currencies are quite weak, the U.S. Dollar just happens to be a little weaker. For this reason, I think that 1.1425 is quite likely to hold today, but I think there will be better trading opportunities in other currency pairs.EURUSDThere is nothing of high importance due today regarding the USD. Concerning the EUR, the President of the ECB will be testifying before the European Parliament at 2pm London time.

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.