EUR/USD Forex Signal

Last Thursday’s signals produced a losing long trade entry from a bullish inside candlestick which rejected the support level identified at 1.1580.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be taken between 8am and 5pm London time today

Short Trade  

• Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.1447.

• 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.

• Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

Long Trades   

• Long entry following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.1372 or 1.1328.

• 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.

• Take off 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 Thursday that a breakout in either direction is likely to be significant, so I would be bullish above 1.1630, and bearish below 1.1580. This turned out to be a great call, as the price broke below 1.1580 later that day and has only just stopped falling after travelling more than 200 pips. The market is dominated by concerns over Turkey and its currency which fell by more than 25% last week and has again reached an all-time low price since the market opened this week. European banks are likely to be exposed to any contagion, so the situation is dragging down all risk assets, but especially the Euro. It is likely that there will be further volatile swings in price which will depend upon the defensive measures the Turkish central bank is likely to outline shortly, so it is hard to predict which way the price will move today – there may well be a strong move in either direction, but a downwards move could travel further if the Turkish central bank is unable to stop the slide in the Lira. There have been signs in recent hours that the Lira has begun to stabilize.

There is nothing important due today concerning either the EUR or the USD.