EUR/USD Forex Signal: Continuing Consolidation Likely

Adam Lemon

There is no trend on any time frame except the short-term bullish break above 1.1240 which we are seeing now.

EUR/USD: Short-term weakly bullish above 1.1241

Last Thursday’s signals were not triggered as there was no bullish price action at either 1.1241 or 1.1205.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered before 5pm London time today.

Short Trade Idea

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1281, 1.1311, or 1.1354.

  • 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 1.1240, 1.1205, or 1.1155.

  • 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.

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 last Thursday that the most likely scenario by far seemed to be a consolidation. We would probably see the price move sideways now and support and resistance levels nearby would most likely not be well respected. I therefore thought it best to stand aside from trading this currency pair.

I think this was a good call as although the price did fall a little on Thursday, the movement has basically been sideways. There is no trend on any time frame except the short-term bullish break above 1.1240 which we are seeing now.

I see the conditions here as remaining unpredictable so again I am not eager to trade this pair. The only potential opportunity I see from the chart which looks reliable would be a long trade from a bullish bounce at the double bottom support level at 1.1195.EURUSDThere is nothing of high importance scheduled today regarding 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

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