EUR/USD Forex Signal

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

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be taken 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 1.1315 or 1.1357.

• 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 1.1257.

• 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 that there was a confluence of resistance at 1.1357 so I would be prepared to take a bearish bias in the event we got a strong bearish reversal there later. I thought there would be better opportunities in other currency pairs.

I was a little wrong as the price fell during the early part of the New York session with some momentum to break below the round number at 1.1300 and end the day very close to its low. However, relative volatility remained low for this move, so I have no confidence it will carry through despite the clear medium-term bearish trend, partly because we are in an area of long-term support and a very pivotal level at 1.1257, even though we just had a 50-day low close.

For these reasons, I would be prepared to get bearish at a rejection of 1.1315 or bullish at a strong rejection of 1.1257.

There is nothing of high importance due today regarding the EUR. Concerning the USD, the Chair of the Federal Reserve will be making a minor speech at 5:45pm London time.