EUR/USD Forex Signal

Yesterday’s signals were not triggered, as none of the key levels were reached.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade

• Go short following a bearish price action reversal on the H1 time frame  immediately upon the next touch of 1.1417.

• 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 Trades

• Go long following a bullish price action reversal on the H1 time frame  immediately upon the next touch of 1.1306 or 1.1256.

• 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 the Euro was weakened to some extent by the very weak British Pound, but it still looked as if the price would struggle to break below this supportive area stretching between about 1.1306 to 1.1250. The most likely scenario was that the price would continue to trade between 1.1306 and 1.1417 so we may see a gently bullish swing next.

This was a pretty good call as the price initially rose a little, before essentially trading sideways over the past 24 hours, with the support below holding and not even being touched.

The picture now seems a little more bearish, with the support looking more vulnerable, but it is really the British Pound which is driving the market. It will probably take a heavier breakdown in the Pound to bring this pair to challenge the support levels below, and that in turn will depend upon developments in British politics over the next few days. I have no directional bias but would be very comfortable being bearish after another failed retest of the nearest resistance level at 1.1417.

There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.