EUR/USD Forex Signal - 7 August 2019

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EURUSD: Bullish break above 1.1200 area

Yesterday’s signals were not triggered, as there was no bullish price action at 1.1191.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1244, 1.1279, or 1.1317.

  • 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 Ideas

  • Long entry following a bullish price action reversal immediately upon the next touch of 1.1163 or 1.1117.

  • Place the stop loss 1 pip below the local swing low.

  • 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 the price had continued to advance now and close the day above 1.1250 that would be an extremely bullish sign. A more likely scenario was a consolidation beneath 1.1243 today. This was a good call, as the price did consolidate below 1.1243 over the day, and the nearest support level has had to be adjusted down, to 1.1163.

The Euro was quite bullish over recent days after reaching a long-term low which triggered buying and also as a safe haven currency in new, strongly risk-off market environment. However, attention has shifted to precious metals, the Yen, and commodity currencies, leaving this pair relatively quiet.

The technical picture looks more bearish, as we seem to be getting a key first lower high below the resistance at 1.1243, so it looks likely that the price will now drift downwards over the short-term.

We will need to see what happens when key resistance or support is next hit to get a better idea of probable direction, so I currently take no directional bias on this currency pair.EURUSDThere is nothing of high importance due today concerning either the EUR or the USD.

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.