EUR/USD Forex Signal - 7 February 2019

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Yesterday’s signals were not triggered, as there was no bullish price action at 1.1378 or 1.1372.

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 1.1380 or 1.1397.

  • 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 1.1350.

  • 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 the picture was looking more bearish, technically dominated by the bearish trend lines which are still shown in the price chart below.

I was ready to take a bearish bias if the price was below 1.1390 at 9am London time. It was, and the price fell further over the day, so this was a good call.

The technical picture remains the same and the Dollar is strong everywhere, so there are good reasons to remain bearish. However, the Bank of England is giving its monthly policy release later today which could push the Euro around in unexpected directions. The support level below at 1.1350 may also be stronger than the other levels reached yesterday.

I would take a bearish bias if the price is at or below 1.1345 at 9am London time today.EURUSDThere is nothing of high importance due today regarding either the EUR or the USD.

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.