EUR/USD Forex Signal

EURUSD: Bearish below 1.1225

Last Thursday’s signals were not triggered, as none of the key levels were reached that day.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered between 8am and 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 1.1224 or 1.1246.

• 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 1.1161.

• Place the stop loss 1 pip below the local swing low.

• 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 last Thursday that I had no confidence that the recent high at 1.1340 was going to be exceeded and overall, I was unsure as to the more likely short-term direction here. I took no directional bias, but I thought that higher prices were slightly more likely than lower prices.

I was correct to be cautious despite the recent bullishness, as the price fell slightly over the course of the day, before falling strongly on Thursday.

The price is now in an area close to long-term low prices. The picture is certainly relatively bearish, as the movement has printed new lower resistance levels which are continuing to hold, and the short-term trend is down. However, the movement here in the Euro is weak and slow, with relatively low volatility. These lows below 1.1200 have also been supportive over the medium-term. In the absence of any major news due today, the price may well not move a lot, but if 1.1225 holds the primary direction is likely to be downwards.There is nothing important due today concerning the USD. Regarding the EUR, the President of the ECB will be making a minor speech at 6pm London time.