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EUR/USD Forex Signal: Retreat From 1-Year High Price

By 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.

My previous EUR/USD signal on 23rd September was not triggered as none of the key support or resistance levels were reached that day.

Today’s EUR/USD Signals

  • Risk 0.75%.
  • Trades may only be taken before 5pm London time today.

EUR/USD Signal Today- 26/09: Retreat From High Price (Chart)

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1182 or $1.1241.
  • Place 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 timeframe immediately upon the next touch of $1.1066, $1.1028, or $1.1005.
  • Place 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.

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EUR/USD Analysis

In my previous EUR/USD analysis last Monday, I wrote that the picture looked somewhat bullish, but that the price was consolidating below the key resistance level at $1.1187, which looked likely to be the day’s pivotal point.

This wasn’t an especially good call, although the price remained below this level all day, without giving an entry opportunity from a rejection of this level.

The picture has become somewhat more bullish still, with the price yesterday rising to trade at a fresh 1-year high above $1.1200, before falling back later during the New York session to close back in familiar territory below $1.1182.

I see this area of resistance just below $1.1200 as a very strong pivotal point, and with the long-term bearish trend in the US Dollar, there must be a good chance of a bullish breakout.

Therefore, I see the best potential opportunity today as a long trade entry following two consecutive hourly closes above $1.1182, without any significant upper wick on the second hourly candlestick.

Regarding the USD, there will releases of Final GDP and Unemployment Claims data at 1:30pm London time today, while Fed Chair Powell will be giving a minor speech at 2:20pm. There is nothing of high importance due today concerning the Euro.

Ready to trade our free Forex signals? Here is a list of the top Forex brokers worth checking out.

Adam Lemon
About 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.

 

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