EUR/USD Forex Signal

Yesterday’s signals were not triggered as the bullish price action at 1.1397 was not triggered until after London closed.

Today’s EUR/USD Signals

Risk 0.75%.

Trades Must be entered prior to 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 1.1381, 1.1397, or 1.1440.

• Put the stop loss 1 pip above the local swing high.

• Adjust the stop loss to break even once the trade is 20 pips in profit.

• Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Long Trades

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1325 or 1.1276.

• Put the stop loss 1 pip above the local swing high.

• Adjust the stop loss to break even once the trade is 20 pips in profit.

• Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

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 as the key levels were all holding up and the action seemed slightly more bearish now, so a test of 1.1325 was more likely. We really needed to see what would happen at 1.1325 or 1.1381 to have a better idea of what will happen next, but I felt that 1.1325 would hold. This was a good call as the level was not even touched, but little happened until the strong move in the British Pound dragged the Euro upwards. The price broke up but was held by the resistance near 1.1400 and has now pulled back. The Pound is quite likely to rise again so the Euro may get some buoyancy from that yet is quite likely to struggle to break above 1.1400 again.

There is nothing of high importance due today concerning the EUR. Regarding the USD, the Chair of the Federal Reserve will be testifying before the House of Congress on its Monetary Policy Report at 3pm London time.