EUR/USD Forex Signal: Bullish Breakout Beyond 1.1500

Adam Lemon

This currency pair tends to trend very reliably, so this long-term bullish breakout is significant.

EUR/USD: U.S. Dollar is selling off strongly

Yesterday’s signals were not triggered, as there was no bearish price action when the price first reached 1.1517.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken prior to 5 pm London time today only.

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1570 or 1.1624. 
  • 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 1.1517 or 1.1467. 
  • Place the stop loss 1 pip below the local swing low.
  • 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 yesterday that I remained bullish as long as the price held up above 1.1394 and I was ready to take a long trade from a bullish bounce at either that level or the lower support level at 1.1371.

I was correct to be bullish, as the price has risen very strongly over the past day and is now trading at a multi-month high price well above the psychologically important 1.1500 level.

This currency pair tends to trend very reliably, so this long-term bullish breakout is significant.

The Euro, along with the Australian Dollar, is very strong, while the USD has begun a long-term downwards trend which is beginning to accelerate. We also see a strong flow out of the USD and into precious metals such as Silver and Gold, which are also breaking to new long-term high prices.

Another bullish technical feature is seen in the price chart below, which exhibits a bullish price channel.

There is no reason not to be bullish as this currency pair tends to advance for a while after showing above-average volatility such as we have just seen. Therefore, a long trade from a bullish bounce at 1.1517 is an attractive prospect.

EUR/USD

There is nothing of high importance due today regarding either the EUR or 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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