EUR/USD Forex Signal: Bullish Price Channel

Adam Lemon

There is steady momentum in the Forex market against the US dollar.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered between 8am and 5pm 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 1.1855, 1.1896, 1.1908, or 1.1922.

  • 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 1.1833, 1.1813, or 1.1783.

  • 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 Tuesday that the technical picture had become somewhat more bullish as the price continued its relatively steady medium-term bullish trend, clearing the former resistance at 1.1800. I thought that the long-term bearish trend line sitting at about 1.1840 may prove to be resistant if reached.

I was looking to enter a long trade from a bullish bounce at either 1.1809 or 1.1783.

I was right to be looking to the long side, but my call was not precise enough, although it was sufficient to avoid trouble.

The technical picture has become still more bullish, with the price now established within a relatively symmetrical bullish price channel, which is shown within the price chart below. The price moved up quite firmly yesterday and the USD is in retreat almost everywhere. Areas of resistance were overcome quite easily.

I will be happy to continue with a long bias and look for a long trade from a bullish bounce at either 1.1833 or 1.1813. The level at 1.1813 looks especially interesting and likely to hold as it is currently confluent with the lower trend line of the bullish price channel.

EUR/USD

Concerning the USD, there will be a release of unemployment claims data at 1:30pm London time. There is nothing of high importance scheduled today regarding the euro.

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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