EUR/USD Forex Signal: Weakly Bearish - 1 April 2020

Adam Lemon

EUR/USD: Heading for support at 1.0933

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

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken between 8am and 5pm London time today only.

Short Trade Idea

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1056.

  • 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 1.0933 or 1.0889.

  • 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 it was probably a good idea to stand aside from trading this pair until the markets got more direction. I was on the right track with this as the market just consolidated.

The market has come to life a bit more today as the USD begins to show some strength and stock markets in the USA look more bearish as President Trump is now making it clear that the next few weeks are going to be hard in the USA as the coronavirus is likely to cause as many as 240,000 deaths nationwide. There had been a lot of denial in the U.S.A. at the seriousness of the outbreak which now seems to be increasing more quickly in the U.S.A. than in any other country, especially in New York City.

Technically the price is still within a long and medium-term consolidation zone and pattern here, but we are beginning to see bearish momentum. If the price can get established below 1.0889 later that would be a very bearish sign and suggest a further meaningful drop in the price would be likely.EURUSDThere is nothing of high importance scheduled for today concerning either the EUR. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Manufacturing PMI numbers at 3pm.

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.