EUR/USD Forex Signal - 23 April 2019

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Yesterday’s signals produced a losing short trade from the bearish engulfing candlestick which rejected the resistance level at 1.1250.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be taken from 8am to 5pm London time today.

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1277.
  • 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 1.1233 or 1.1214.
  • 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.

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EUR/USD Analysis

Yesterday I saw the day’s pivotal level as likely to be 1.1250. If the price could get established above that I thought it was likely to continue upwards, to at least 1.1275. In fact, it has only made it to 1.1260 before falling again. Liquidity will improve today and therefore it is really too early to make any calls before the London open as this tends to produce volatility and surprising price movement. The best that can be said now is that there is a long-term bearish trend in this currency pair.

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There is nothing important due today concerning 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.