EUR/USD Forex Signal

Yesterday’s signals produced a profitable long trade from the bullish doji and inside candlestick which rejected the support level at 1.1225, but it only made just a little more than the minimum 20 pips of profit.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade

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

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1213.
  • 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.

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EUR/USD Analysis

I wrote yesterday that if 1.1225 held then the price was likely to rise higher.

I was ready to be bearish if the price could trade below 1.1213 for a couple of hours on above-average volatility.

This was a good call as the price did rise somewhat after rejecting 1.1225 from above. However, this level has been invalidated, leaving 1.1213 as the pivotal point which is likely to be felt as such today.

A sustained break below 1.1213 would be a bearish sign, in line with the long-term bearish trend. Despite that, the Euro is relatively strong, holding up over the short-term, and may rise higher if 1.1213 is rejected from above again.

eurusd

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. Learn more from Adam in his free lessons at FX Academy.