EUR/USD Forex Signal

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EURUSD: Pivotal point at 1.0993

Yesterday’s signals were not triggered, as there was no bullish price action when the support level at 1.1015 was reached.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade Ideas

⦁ Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1039, 1.1043, 1.1056, or 1.1093.

⦁ 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 1.0993, 1.0966, or 1.0941.

⦁ 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.

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EUR/USD Analysis

I wrote yesterday that the area around 1.1000 was going to be important – if it held, we could expect another upwards move, but if the price had established below 1.0993, it would be a bearish sign. I also expected key support levels will held.

The price hardly moved yesterday, even by the standards of the very low volatility which we have seen in this pair recently.

The support at 1.1015 did not hold, but the 1.1000 / 1.0993 area did.

There is no significant change to the technical picture, so I again am prepared to take a bearish bias if the price can get established below 1.0993 later, perhaps after the U.S. data release. Conversely, if that level and 1.1000 hold up, the price should move in a more bullish direction.EURUSDThere is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time. 

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