EUR/USD Forex Signal: Bullish Above 1.1841

Adam Lemon

EUR/USD: Euro relatively strong against the U.S. dollar

Yesterday’s signals produced insufficiently bearish price action at 1.1881 to trigger a short trade entry, but this resistance level capped yesterday’s high very precisely.

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 or 1.1929. 
  • 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 1.1841, 1.1819, 1.1803, 1.1789, or 1.1767. 
  • 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 the outlook was bullish, and it seemed likely that the next resistance level at 1.1881 would be reached today. I thought that buying dips below 1.1881 in the meantime was likely to be a good day trading strategy here.

This was a good call as the price did rise over the day to hit 1.1881 which held as a resistance level, capping the high of the day quite precisely.

We have seen the U.S. Dollar gain solidly everywhere in recent hours as risk sentiment has soured again, and money has flowed into safe havens. However, it is worth noting that we have seen only quite a small bearish retracement here, with the Euro showing some relative strength.

The technical picture remains bullish, as we have seen yet another higher support level print, this time at 1.1841. If this support continues to hold, a likely scenario will be another test of the resistance level at 1.1881.

We still have a long-term bullish trend, with the price above its levels from three and six months ago.

I am prepared today to take a long trade from a bullish bounce at either 1.1841, 1.1819, or 1.1804.

EUR/USD

There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of Unemployment Claims 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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