EUR/USD Forex Signal

|

EURUSD: Weakly bullish above 1.1056

Last Thursday’s signals were not triggered, as the bullish price action took place slightly below the support level identified at 1.0993.

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 1.1093, 1.1106, or 1.1140.

⦁ 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 1.1056, 1.1043, 1.1039, 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.

Advertisement
Great trade opportunities are waiting - don't wait to profit from this pair!
TRADE NOW

EUR/USD Analysis

I wrote last Thursday that as the pace of the down trend was slowing, and volatility was very low, a deeper bullish pull back was becoming increasingly likely to happen. However, the downwards trend was still there, so I was again looking to take a bearish bias at any bearish rejections of any resistance level. I was correct to note that a bullish move was becoming more likely as this is what happened.

The price is now looking more bullish, having established new support above 1.1018. The British Pound is strong right now and this is dragging up the Euro along with it, while the U.S. Dollar trades as one of the weaker major currencies. This suggests that the line of least resistance is likely to be upwards, and the price has room to rise today to at least 1.1093. Therefore, I take a weakly bullish bias on this currency pair today above 1.1056. 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