EUR/USD Forex Signal

Yesterday’s signals were not triggered, as there was no bullish price action at 1.1703.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trades

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1650 or 1.1703.

• 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 1.1596.

• 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 took a bullish bias yesterday, expecting to see the price continue to rise to test 1.1759. The price did rise until the Chair of the Federal Reserve testified, at which point it made a sharp reversal and fell strongly and consistently, breaking below both the 1.1700 and 1.1650 support areas. I was wrong, but also right in a sense as the price did continue upwards until the market-moving event.

It makes sense to be bearish on this pair now, as it is falling strongly in line with the long-term bearish trend. The U.S. Dollar is strong everywhere. The price also has another 30 pips or so to fall before reaching support, and plenty of momentum. I have a bearish bias today.

There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by testimony by the Chair of the Federal Reserve before Congress at 3pm and Crude Oil Inventories at 3:30pm.