EUR/USD Forex Signal

|

Yesterday’s signals produced a profitable short trade from the bearish pin candlestick which rejected the resistance level identified at 1.1277.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be entered before 5pm London time today only.

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1277 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 1.1225 or 1.1220.
  • Put the stop loss 1 pip below the local swing low.
  • Adjust the stop loss to break even once the trade is 20 pips in profit.
  • Remove 50% of the position asprofit 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.

Great trade opportunities are waiting. Don't miss it!
TRADE NOW

EUR/USD Analysis

I wrote yesterday that the technical picture was now more bullish as although we had a long-term bearish trend, we just had a 30-day high close and a bullish break above former resistance at 1.1225 which was quite significant. I thought that the price now would probably consolidate around 1.1250 but may well then resume its advance – but probably not today.

This was a good call as the price was effectively held yesterday by both resistance and support nearby and effectively consolidated around 1.1250. However, the short-term momentum is bullish again and the U.S. Dollar continues to be weak. The signs all point to higher prices today, so we are likely to get a test of the resistance again at 1.1277 which should be today’s pivotal point. If the price can get established above that level, it would be a bullish sign.

eurusd

There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm 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.