EUR/USD Forex Signal

Last Thursday’s signals were not triggered, as none of the key levels were reached that day.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1430.

  • 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

  • Long entry 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 last Thursday that the price was really consolidating within a range over this 1.13 to 1.15 area, so we were likely to see the price continue to move slowly between key support and resistance levels. As such, I had no directional bias on this currency pair. This was a good call as the range has held. All that can be added from the past few days is that the price looks just a little more bullish than it did before, and that we have a new key resistance level at 1.1430, so if the price can trade above that level for an hour or two, it would have a chance to continue up to 1.1500. The situation is still summarised as a range between 1.1300 and 1.1500 so reversals at either area are likely to be the best trades possible here right now. I have no directional bias yet.

EURUSD

There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI 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.