EUR/USD Forex Signal - 5 February 2019

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Yesterday’s signals were not triggered, as there was no bullish price action at 1.1394.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be taken before 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 1.1440 or 1.1477.

  • 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 1.1394, 1.1378, or 1.1372.

  • 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 the resistance level at 1.1477 looked attractive as it was currently perfectly confluent with a short-term bearish trend line shown in the price chart below. However, I thought the price direction looked uncertain.

The picture is a little more bearish now, as the price has fallen further, and invalidated the former support level at 1.1435 while printing new lower resistance at 1.1440.

The U.S. Dollar is broadly strong.

I would take a bearish bias today at a bearish reversal following a pull back to 1.1440 or 1.1477.EURUSDThere is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm 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.