EUR/USD Forex Signal

ANALYSIS | 01/01/2016 00:01:01 GMT

Yesterday’s signals were not triggered, as there was no suitable price action when any of the key price levels were reached during the specified time.

Today’s EUR/USD Signals

Risk 0.75%.

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

Long Trade

Long entry following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.2407 and 1.2390.
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.
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.

Short Trade

Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2571.
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.
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 I had a bullish bias and that there seemed to be room to advance to 1.2429, in line with the long-term bullish trend. This bullish bias paid off, despite the price falling initially upon the release of higher than expected U.S. inflation data. The price quickly bounced back and rose strongly during the New York session. The situation now looks even more bullish. The Asian session has seen the price consolidate just below the resistance level at 1.2456, as shown in the price chart below. Although this is an obvious resistance level, I doubt it will hold, so would not look for a short trade there today, looking instead to the next level at 1.2571. I maintain a bullish bias in line with the long-term bullish trend.