EUR/USD Forex Signal: Likely to Rise Today

Adam Lemon

Support at the 1.2129 level looks pivotal.

Last Thursday’s EUR/USD signals were not triggered, as none of the key support or resistance levels identified were hit during that day’s London session.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade Idea

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2277.
  • Put 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 Idea

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2129, 1.2102, 1.2091, 1.2048, or 1.1994.
  • Put 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 last Thursday that the longer the support level at 1.1994 held, the more chance we would get a major bullish reversal. I was looking to take a long trade from a strong bullish bounce at 1.1994.

This was a great call, although the price did not get back to 1.1994 that day. The level did produce a major bullish reversal, and the more bullish technical picture persists.

The price rose strongly last Friday to close at a new 50-day high, before making a small bearish retracement yesterday. This usually suggests that the next day – which is today – is likely to be an up day, and we do now see a higher price from yesterday’s close, after the price made a bullish bounce during the Asian session at the support level of 1.2129.

There are no obvious key resistance levels until 1.2277, so the price seems to have much room to rise, like the GBP/USD currency pair did yesterday.

I will be very happy to take a long trade from any bullish bounce we get later today following a retracement to the support level at 1.2129.

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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