EUR/USD Forex Signal - 9 January 2019

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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.