EUR/USD Forex Signal - 8 April 2019

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Last Thursday’s signals were not triggered, as there was no bullish price action at 1.1228, and the bullish price action at 1.1214 was insufficiently strong.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered before 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 1.1300 or 1.1325.
  • 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 1.1214, or 1.1150.
  • 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

I wrote last Thursday that there was still a long-term bearish trend, and the price was not really ready to rise, being capped at around 1.1250.

I wasn’t certain on direction, but I was right to look towards bearish developments.

This pair is now in an interesting technical position: a long-term bearish trend, the price near long-term lows and close to making a serious bearish breakdown, as well as short to medium-term bearish trend lines pushing down the price. However, at the same time, we see a possible long-term double bottom at 1.1200 and a medium-term double bottom at 1.1214.

In the absence of any major news items scheduled today, it is likely that there will be little movement now, and that technical levels will be respected. It will probably be best in this environment to aim for conservative targets.

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There is nothing of high importance 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.