EUR/USD Forex Signal: Continuing Consolidation Pattern

Adam Lemon

EUR/USD: Potential support at 1.1195

Yesterday’s signals were not triggered as there was no appropriate reversal price action at either of the key levels identified which were hit.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade Idea

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1289, 1.1311, or 1.1354.

  • 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 1.1195 or 1.1155.

  • 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.

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 I saw the conditions here as remaining unpredictable so again I was not eager to trade this pair. The only potential opportunity I saw from the chart which looked reliable would be a long trade from a bullish bounce at the double bottom support level at 1.1195.

This was a good call as the two key levels which were reached did not prove to be reliable. The price has just continued to print a wide consolidation between 1.1195 and 1.1354.

I see no change to this sideways pattern, and I still do not see any good potential opportunities here with the exception of a long trade from a bullish bounce off the support level at 1.1195.EURUSDThere is nothing of high importance scheduled today regarding the EUR. Concerning the USD, the Chair of the Federal Reserve will be testifying before the House of Representatives at 5:30pm London time.

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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