EUR/USD Forex Signal - 16 October 2019

EURUSD: Weakly bullish above 1.1018

Yesterday’s signals were not triggered as there was no bullish price action at either 1.1018 or 1.1001.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken before 5pm London time today.

Short Trade Idea

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1131.
  • Place 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.
  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Long Trade Ideas

  • Go long following a bullish price action reversal on the H1 time frame  immediately upon the next touch of 1.1018, 1.0993, or 1.0966.
  • Place 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.
  • Take off 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.

EUR/USD Analysis

I took a cautiously bullish bias yesterday above 1.1018. The price dipped below 1.1000 but recovered and is now about where it was 24 hours ago. The action here is quiet, with the market’s attention on the British Pound rather than the Euro.

The price seems to be consolidating above 1.1018 with a weakly bullish bias, but the long-term trend is bearish so contradicts that. For this reason, plus the quiet price movement, I suspect it is better to avoid trading this pair today. However, quick long scalps off bounces at support levels on short time frames may work out OK today.

eurusd

There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.

Adam Lemon

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.