EUR/USD Forex Signal

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EURUSD: Gently bearish on Brexit uncertainty

Yesterday’s signals were not triggered, as there was no bullish price action when 1.1135 was reached.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade Idea

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1198.

  • Put 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.

  • Remove 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 on the H1 time frame immediately upon the next touch of 1.1063 or 1.1018.

  • Put 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.

  • Remove 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 there were probably going to be further opportunities for profitable long trades in this currency pair and in the GBP/USD currency pair as the outlines of a relatively soft Brexit deal begin to take shape, and as the USD seems to be beginning a new long-term bearish trend I saw the day’s pivotal point as likely to be 1.1135.

I was wrong on both counts, as the British Parliament’s effective sabotaging of next week’s Brexit date knocked the British Pound down, which also had a lesser but real negative effect on the Euro, and the support level at 1.1135 was invalidated.

Price movement is difficult to forecast now in this pair, as we are without a long-term trend. The U.S. Dollar is stronger everywhere today, so it may be that the price drifts down over the day. As there are no key items due, it seems likely that the nearest support level at 1.1063 will hold if it is reached, but it may well not be hit today. 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.
Learn more from Adam in his free lessons at FX Academy