EUR/USD Forex Signal - 9 January 2019

Yesterday’s signals were not triggered as the bullish price action took place between the two support levels, however that area did hold as the low of yesterday.

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 1.1500.

  • 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 1.1430 or 1.1416.

  • 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 we were seeing the beginning of hints of a major bullish movement but that the price would need to break above 1.1500 first. Long trades might be a good idea if there were strong bounces at the nearby support above 1.1400 and I was ready to take a bullish bias yesterday if we had got such a bounce later after London opens.

This was a good call as the supportive area above 1.1400 held.

The price is still well below 1.1500 and ranging with a slight bullish bias. The outcome of today will probably depend upon whether or not the support at 1.1416 holds. If it holds, we will be more likely to see a bullish break of 1.1500 at some time this week. If it breaks down, then we will just be right back in the range with no bias at all.

I would take a bullish bias today above 1.1500.EURUSDThere is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm 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.