EUR/USD Forex Signal: Weak Bullish Trend

Adam Lemon

EUR/USD: Scalp from 1.1800 area?

Last Thursday’s signals produced a losing trade from the bullish pin candlestick which rejected the support level identified at 1.1753.

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 1.1881. 
  • 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 1.1796, 1.1760, or 1.1726. 
  • 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 last Thursday that a bullish bounce from 1.1753, especially if 1.1750 was also hit, would be a worthwhile long trade entry opportunity. I was wrong, this was not a good call, as the price broke lower before recovering.

The weak bullish trend has persisted, and as this week opens the price is still holding up above the nearest resistance level at 1.1796. Trading is likely to be thin today due to it being Monday, as well as a day with no key data releases scheduled, and it is also a public holiday in the U.S.A.

It is likely that the price will not move much today. The best approach will probably be to try to take a long scalp off any touch of the nearest support level at 1.1796, with an entry point ideally above 1.1800 as well as that level.

EUR/USD

There is nothing of high importance due today regarding either the USD or the EUR. It is a public holiday in the U.S.A. today.

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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