EUR/USD Forex Signal

Yesterday’s signals were not triggered, as there was no bearish price action at 1.1425.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be taken between 8am and 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 1.1455 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 1.1424, 1.1378, 1.1372, or 1.1350.

  • 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 I thought that that 1.1425 was quite likely to hold. I was wrong, the price broke above that level and now seems to be using it as new support which is a bullish sign. Movements here and in the rest of the market are still quite small so I remain cautious, although there is no doubt the Euro is being bought a little at present. The line of less resistance is upwards, but I have little confidence in this move for the time being.

A break above 1.1455 would be a very bullish sign, as it would suggest we might then get a test of long-term major key resistance around 1.1500.EURUSDThere is nothing of high importance due today regarding the EUR. Concerning 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.