EUR/USD Forex Signal
|Last Thursday’s signals were not triggered, as unfortunately the bullish price action took place slightly below the support level identified at 1.1303.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trades
-
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1344 or 1.1397.
-
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.
-
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trades
-
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1298 or 1.1249.
-
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.
-
Remove 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 las Thursday that the price looked more likely to rise than fall today, so I would be much more comfortable taking long rather than short trade entries. If the price could trade above 1.1344 for a couple of hours, I thought that would be a bullish sign.
I was correct insofar as the major move of the day was bullish, unfortunately the price breached the support enough to render it not useful except as a rough guide.
There is a long-term bearish trend, but the U.S. Dollar is weak right now, so we are seeing a firm counter-trend bullish move.
A sustained break above 1.1344 would be a bullish sign, but reversals at either 1.1344 or 1.1298 could be good trades – I have no directional bias, but I think that long trades have a better probability than short trades overall.
There is nothing of high importance due today concerning the EUR or the USD.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.