EUR/USD Forex Signal: Bullish Trend Still Valid

Adam Lemon

Key support at 1.1685

Yesterday’s signals were not triggered as there was no bearish price action when the resistance level at 1.1779 was first reached.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered between 8am and 5pm London time today.

Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1829, 1.1848, 1.1863, or 1.1885.
  • 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 1.1685 or 1.1624.
  • 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 due to the upcoming and important FOMC statement and interest rate release, trading Forex would become very unpredictable, but any bullish movement was still likely to go further than any bearish move which the release might produce.

This was a good call, as the price did break to a new high following the release above 1.1800 – the highest price made over the past 18 months – but has made a bearish retracement over the past few hours.

This bearish retracement is nothing unusual, and the outlook remains bullish over the medium-term despite the move in favour of the U.S. Dollar, as long as the price holds up above the key support level identified at 1.1685.

I am happy to take a long trade today from a bullish bounce at either 1.1685 or 1.1624.EUR/USD

Regarding the EUR, there will be a release of German Preliminary GDP data at 9am London time, followed by U.S. Advance GDP data at 1:30pm concerning the USD.

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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