EUR/USD Forex Signal

Adam Lemon DailyForex.com

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered before 5pm London time today.

Short Trades

Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1640 or 1.1715.
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

Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1515.
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

Concern about the Italian debt increases the pressure on the euro. The pair fell to the 1.1565 level during yesterday's trading session and settled around 1.1588. Trades are within a tight range since the beginning of this week in anticipation of ECB monetary policy decisions and Draghi's comments on Thursday, as well as the release of US inflation data. The US dollar is still supported by the Federal Reserve policy supporting further interest rate increases and the escalation US-China trade war.

Technically, the pair needs to break above1.1665 and 1.1736 levels for a stronger bounce back higher. Any move towards the 1.1500 psychological support level will give the downside a new momentum.

There is nothing important due today concerning the EUR. Regarding the USD, there will be the release of PPI data and crude oil inventories.

Author

Adam Lemon

DailyForex.com

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.

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