EUR/USD Forex Signal: Still Bullish

Adam Lemon

EUR/USD: Medium-term upwards trend

Yesterday’s signals were not triggered, as the bullish price action took place a little way below the support level identified at 1.1796.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered before 5 pm London time today.

Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1881. 
  • 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

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1790, 1.1760, or 1.1726. 
  • 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.

EUR/USD Analysis

I wrote yesterday that as it was likely that the price would not move much over the day, the best approach would 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.

This was not precise enough to trigger a trade entry signal, but the low of the day was at 1.1786 so it was close to being accurate, with the price bouncing up from that level before falling back.

The technical situation is little changed, with the price having moved by only a little. The nearest support level has been adjusted slightly, to 1.1790, from where the price now seems to be making a bullish turn following a normal bearish retracement.

The medium-term bullish trend survives and the support at 1.1790 looks likely to be today’s pivotal point. As long as this level holds up, we are likely to see a rise in the price today.

Arguably there is a lower high at about 1.1820 so this area might hold the price. However, there are no key resistance levels that stand out until 1.1880 so the price has room to rise.

I think we are somewhat likely to see higher prices today.

EUR/USD

There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of CPI (inflation) data at 1:30 pm London time.

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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