EUR/USD Forex Signal: Support at 1.1195 Holds

Adam Lemon

Despite the bullishness of recent hours, the best opportunity which is likely to set up today would be a short trade from a bearish turn at any of the nearby resistance levels at and below 1.1354 shown above. 

EUR/USD: Medium-term consolidation pattern dominates

Yesterday’s signals produced a nicely profitable long trade worth about 76 pips maximum so far from the bullish bounce by the outside candlestick at the support level identified at 1.1195. This has a reward to risk of approximately 3 to 1 which is an excellent ratio.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade Ideas

  • 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. 
  • 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 hinted yesterday that I was expecting a breakdown later below 1.1195, which had held as support the previous day and was a key pivotal point.

I was right to look to the importance of the level but wrong as to direction, as the level held just as New York opened. A firm rebound in risk sentiment pushed the price up from there, to where it now sits near the closest resistance level, giving a nicely profitable long trade.

The technical picture over the medium-term is one of a continuing ranging consolidation pattern between 1.1195 and 1.1354. Despite the bullishness of recent hours, the best opportunity which is likely to set up today would be a short trade from a bearish turn at any of the nearby resistance levels at and below 1.1354 shown above. However, there will be a release of non-farm payroll data in the U.S. later which could cause unpredictable price spikes, so it best to wait until an hour or so after that release to take any such trade.

EUR/USD

There is nothing of high importance scheduled today regarding the EUR. Concerning the USD, there will be a release of the Non-Farm Payrolls data at 1:30 pm London time.

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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