EUR/USD Forex Signal

Last Thursday’s signals were not triggered as none of the key levels were hit during the London session that day.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered before 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 1.1484, 1.1540, or 1.1572.

• 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 1.1416.

• 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 last Thursday that despite recent bullishness, the short-term momentum showed the price falling from the next resistance level I had identified as 1.1572, so it seemed that some kind of pull-back was going to happen now. This was a very good call as the price has fallen from that area by more than 100 pips since last Thursday’s Asian session.

The situation now is much less bullish, in fact the price is really quite unpredictable and directionless except on very short-term time frames. It looks as if 1.1484 is going to be today’s pivotal level. Safe-haven assets seem to be coming back today, possibly provoked by President Trump’s tweets appearing to threaten the Turkish economy and to fully militarize the U.S./Mexico border. This might strengthen the Euro but seems more likely to side-line this currency pair and leave it relatively unaffected.

I would be prepared to take a bearish bias if the price rejects and continues to fail to break above 1.1484 over the first hour or two of the London session.

There is nothing of high importance due today concerning either the EUR or the USD.