EUR/USD Forex Signal: Still Bullish

Adam Lemon

As long as support levels hold, we can say that the bullish trend is still valid, which points to higher prices being more likely over the coming days.

EUR/USD: Bullish trend remains strong above 1.1685

Yesterday’s signals were not triggered as none of the key levels were reached.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken before 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 1.1779 or 1.1829. 
  • 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 1.1685 or 1.1624. 
  • 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 the odds usually would favor new highs being made here over the rest of this week, but the big sell-off in gold and silver put that in doubt.

I was ready today to take a long trade from a bullish bounce at any of the nearby support levels, but that did not happen.

The price has recovered somewhat after the pull-back, with all key support levels still holding, and these are bullish signs. As long as support levels hold, we can say that the bullish trend is still valid, which points to higher prices being more likely over the coming days.

The problem with using technical analysis today is that we have the biggest event in the Forex calendar coming up towards the end of the New York session – the FOMC interest rate and statement release. Any change to interest rates is very unlikely, so the statement will be watched especially closely today, also due to the fact that there is increasing concern over the U.S. economic recovery due to the strong resurgence seen over the past few weeks by the coronavirus. The U.S.A. is again now reporting more daily deaths from the virus than any other country in the world, having overtaken Brazil this week, and numbers of confirmed new cases remain high.

For this reason, trading Forex will become very unpredictable, but any bullish movement is still likely to go further than any bearish move which the release will produce.

EUR/USD

Regarding the USD, there will be a release of Pending Homes Sales data at 3pm London time, followed by the FOMC Statement and Federal Funds Rate at 7pm then the usual press conference half an hour later. There is nothing of high importance due concerning the EUR.

 

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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