EUR/USD Forex Signal

Yesterday’s signals were not triggered, as the bearish reversal at the resistance level of 1.1322 did not take place until after 5pm London time.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trades

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1322 or 1.1344.

• 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 Trade

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1276.

• 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.

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 starting at the support of 1.1276 we had a major pivotal point which could either be the start of a medium-term bullish move up or a strong, long-term trend bearish breakdown. I thought the price was more likely to fall than rise over the day. I wasn’t truly correct although there was a downwards move within the general movement. The resistance at 1.1322 held and the price is keeping its medium-term bearish technical pattern but is trading on relatively low volatility. I would take a bearish bias but the ECB will be giving its monthly input today so that is likely to cause a spike in volatility and unpredictable price movement. Note that we are close to long-term lows so a spike to 1.1276 or lower and then a strong bullish bounce could be the start of a medium-term bullish trend.

There is nothing of high importance due today concerning the USD. Regarding the EUR, there will be a release of the ECB’s Main Refinancing Rate at 12:45pm London time followed 45 minutes later by the usual press conference.