EUR/USD Forex Signal - 2 April 2019

|

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

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1300 or 1.1325.
  • 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 1.1150.
  • 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 there was a long-term bearish trend and it looked ready to break to new lows. I thought the price was likely to make a bullish retracement during the day and it did before making lower prices again. However, I was looking for a break below 1.1200 on above-average volatility, which never happened.

The price is now close to multi-month lows although the speed of the move down is slowing. There are also some signs of buying at the round number of 1.1200. We really need a decisive break below 1.1190 and if that happens later today on above-average volatility I would take a bearish bias here. There is a clear long-term bearish trend, this is one of the few trending Forex currency pairs right now,

eurusd

There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of Core Durable Goods Orders data at 12:30pm 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.