EUR/USD Forex Signal

EURUSD: Ranging below 1.1251

Yesterday’s signals produced a short trade from 1.1246 which gave about 20 pips of profit at best. It should probably be closed now at break even.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken before 5pm London time today.

Short Trades

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1251.

• 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 1.1205 or 1.1161.

• 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 picture was certainly relatively bearish, the movement here in the Euro was weak and slow, with relatively low volatility. I thought that the price may well not move a lot, but if 1.1225 held then the primary direction was likely to be downwards. This was a good call as the level at 1.1225 was broken.

The price is now recovering and may well test the nearest resistance at 1.1251. If it breaks above that, it would be a mildly bullish sign. This pair is not moving much and there are better opportunities elsewhere such as in the commodity currencies and the Japanese Yen.There is nothing important due today concerning the USD. Regarding the EUR, the President of the ECB will be making a minor speech at 9am London time.