EUR/USD Forex Signal

EURUSD: Weakly bullish

Yesterday’s signals were not triggered, as there was no bullish price action below 1.1293.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken before 5pm London time today

Short Trade

• Go short following a bearish price action reversal on the H1 time frame time frame immediately upon the next touch of 1.1397.
• 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 time frame immediately upon the next touch of 1.1225.

• Put the stop loss 1 pip below the local swing low.
• 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 although the price movement was very slow, the odds still favoured the bulls here, and I thought that we were likely to see new long-term higher prices over the course of today, probably at the time the U.S. data is released or after that.

Things have turned out differently and the picture has changed: the primary movement was downwards after the inflation data release, and the former support level at 1.1293 was invalidated. Although the price has been rising again over recent hours, and the bearish retracement was not excessively deep, it feels as though the situation here is significantly less bullish. I have no confidence that the recent high at 1.1340 is going to be exceeded and overall, I am simply unsure as to the more likely short-term direction here. I take no directional bias today but I think higher prices are slightly more likely than lower prices.

There is nothing important due today concerning either the EUR or the USD.