EUR/USD Forex Signal - 6 February 2019

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Yesterday’s signals were not triggered, as none of the key levels were reached during the session.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be entered between 8am and 5pm London time today only.

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1440 or 1.1477.

  • Put the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1378, 1.1372, or 1.1350.

  • Put the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

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 U.S. Dollar was broadly strong.

I was ready to take a bearish bias at a bearish reversal following a pull back to 1.1440 or 1.1477.

The pull-back never happened but I was correct to look for a short trade as the price fell over the course of the past 24 hours.

The picture looks somewhat more bearish, technically dominated by the bearish trend lines shown in the price chart below.

I would take a bearish bias today if the price is below 1.1390 at 9am London time, but I would also beware of the support levels above 1.1372. If the price can break below them, it could fall all the way to 1.1350.EURUSDThere is nothing of high importance due today regarding either the EUR or the USD.

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.