EURUSD Forex Signal

Adam Lemon DailyForex.com

Yesterday’s signals produced a losing long trade from the bounce at 1.1584.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trades

Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1630 or 1.1677.
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 1.1580.
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 a failure at 1.1630 could be a very good opportunity to enter a short trade in the hope that the long-term bearish trend here would reassert itself. In fact, the price continued to fall, before being eventually supported at 1.1580, and then trying and failing to rise back to the 1.1630 level. The situation here has become increasingly uncertain, with the price trapped in a relatively narrow range between 1.1580 and 1.1630 with neither bulls nor bears having the upper hand. I think a breakout in either direction is likely to be significant, so I would be bullish today above 1.1630, and bearish below 1.1580.

There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of PPI data at 1:30pm London time.

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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