EUR/USD Forex Signal: Euro Weaker

Adam Lemon

The Euro has weakened slightly over the past day and is moving down over the short-term.

EUR/USD: New lower resistance printed at 1.1828

Yesterday’s signals were not triggered, as none of the key levels were 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 1.1828 or 1.1875. 
  • 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 1.1786, 1.1745, or 1.1685. 
  • 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 support and resistance levels were more likely than usual to hold. I saw the price as evenly balanced between bulls and bears on short and medium-term time frames.

This was a good call insofar as the price did not reach any of the key support or resistance levels. The price did not move much mostly due to the U.S. public holiday.

The Euro has weakened slightly over the past day and is moving down over the short-term.

The price is approaching strong key support at 1.1786 and below, which has been the lower boundary of the recent price range.

Despite the long-term bullish trend, if the price can make a significant break below the 1.1745 area, that will be a bearish sign.

We already have a technical double bottom at 1.1765 so the reaction when the price hit there, as it is very likely to, will tell us something.

I will take a long trade from a bullish bounce at 1.1765, 1.1745, or 1.1685 if we get any of these set-ups today.

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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