EUR/USD Forex Signal

Last Thursday’s signals produced a profitable long trade from the large bullish outside candlestick which rejected both of the support levels, at 1.1225 and 1.1220.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be entered before 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 1.1397.
• 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 immediately upon the next touch of 1.1297 or 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 last Thursday that as the key support at 1.1225 had held up, so the recent bullishness was still technically intact. I was more confident seeing 1.1225 as today’s likely pivotal point, and if it held, we could expect that higher prices over the course of the day will be most likely.

This was a great call as I was right about both the bullish direction and the floor at 1.1225. The price went on to make a bullish 50-day breakout, invalidating resistance at 1.1325, but has sold off in recent hours as the U.S. Dollar makes a comeback. The technical picture is still bullish provided the support level at 1.1297 holds. If it does hold going into the London session, that is likely to be the pivotal point for today and we should see another bullish upwards thrust over the course of the day. I would take a long bias / trade entry at a strong bullish bounce at 1.1297.

There is nothing important due today concerning either the USD or the EUR. It is a public holiday today in France and Germany.