EUR/USD Forex Signal: Looks likely to get established below 1.1000 - 28 January 2020

EUR/USD: Bearish

Yesterday’s signals were not triggered, as none of the key levels were reached.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered between 8am and 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 1.1039.
  • 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 1.0993, 1.0966 or 1.0941.
  • 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.

EUR/USD Analysis

I wrote yesterday that I would remain at least weakly bearish provided the price could stay below 1.1039. Although the price still looked a little more likely to fall, the area around the big round number at 1.1000 could be very supportive.

This was a good call as the price has moved down by just a little over the past 24 hours but has not traded below 1.1000.

There has been absolutely no change to the technical picture so I can make exactly the same call today as I made yesterday: weakly bearish below 1.1039, but bears should want to see the price trade below 1.1000 soon or we have a greater chance of a deeper bullish retracement.

EUR/USD

Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time. There is nothing of high importance due today regarding the EUR.

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.