EUR/USD Forex Signal: More Bullish

Adam Lemon

The Euro is one of the strongest major currencies, while the U.S. Dollar has begun to weaken more strongly, in line with its long-term bullish trend.

EUR/USD: Approaching long-term high prices

Yesterday’s signals were not triggered as there was no bearish price action when the resistance level identified at 1.1874 was first reached.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1929, 1.1964, or 1.2005. 
  • 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

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1854, 1.1802, or 1.1786. 
  • 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.

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EUR/USD Analysis

I wrote yesterday that I took a slight bullish bias. I was only interested in a long trade from a bullish bounce at 1.1802 or 1.1786.

I was correct to take a bullish bias as the price has continued to rise over the past day and has gotten established above another former resistance level. Unfortunately, there was no retracement to a support level.

The Euro is one of the strongest major currencies, while the U.S. Dollar has begun to weaken more strongly, in line with its long-term bullish trend.

We are seeing a little reluctance to rise above the round number at 1.1900, but the outlook looks bullish. The highest multi-month closing price is 1.1935 and it is possible we could exceed that level today.

The problem for bulls is the there is very strong resistance a bit higher in the 1.2000 area which is a key psychological level as well as a major round number.

I would take a long trade today from a bullish bounce at 1.1854 until 1.1925. I think there is a small likelihood that we will see another rise in price today.

EUR/USD

There is nothing of high importance scheduled today concerning 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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