EUR/USD Forex Signal: Consolidating Above 1.0832

Adam Lemon

We can say there is some medium-term bearish momentum, with the Euro one of the relatively weaker major currencies, but the support at 1.0832 seems quite strong.

 

 

Yesterday’s signals were not triggered as there was no bearish price action when the resistance level identified at 1.0895 was first 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 1.0919 or 1.0968.
  • 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

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0832 or 1.0710.
  • 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
Take advantage of recent volatility with the world's most popular pair.
Trade EUR/USD now!

EUR/USD Analysis

I wrote yesterday that the price was definitely bullish now over the short-term, but there was no long-term trend to exploit here, so it should be best to trade bounces off key levels carefully in either direction on short time frames. I thought the price was likely to rise over the day and at least hit the resistance level at 1.0895 if not exceed it.

This was a good call as the price did advance to 1.0926 before turning bearish again and falling over recent hours to test the pivotal point which remains valid, as support, at 1.0832.

We can say there is some medium-term bearish momentum, with the Euro one of the relatively weaker major currencies, but the support at 1.0832 seems quite strong. This suggests that it may remain possible for at least one or two long scalps from bounces at this level if profits are taken conservatively, but the bigger opportunity will arise on the short side if the price can break convincingly below 1.0832 as it could then fall to at least 1.0750.

I will take a bearish bias on this currency pair if we get two consecutive hourly closes later below 1.0832.

EUR/USD

There is nothing of high importance scheduled for today concerning either the EUR or the USD.

About the Author
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.
Learn more from Adam in his free lessons at FX Academy

Currency Pairs:
Comments

Did you have a good experience with this broker? A bad one? Tell our team and traders worldwide about your experience in our User Reviews tab. Your email address will not be posted.

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments
Add Comment

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.