EUR/USD Forex Signal

Adam Lemon DailyForex.com

Yesterday’s signals were not triggered as the support level at 1.1393 was reached only before the London session. It did mark the low of the day very effectively.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade

Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1547.
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 Trades

Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1393, 1.1368, or 1.1354.
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.

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 as there was a cluster of three support levels close below the current price, and the short-term action was bullish, it seems quite probable that the price would rise today. If the price was rising by 9am London time and holding above 1.1400 I was ready to take a bullish bias until 1.1445 at least. This was a good call as the price rose firmly into the London session. The situation still looks bullish, as the price is close to making a new 20-day high and over the short-term has flipped the former resistance level at 1.1445 to become new higher support. Therefore, I would again take a bullish bias today if the price is making new highs at 9am London time. The only case bears have is that 1.1500 may be a big psychological number and provide resistance to a further rise.

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

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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