EUR/USD Forex Signal | DailyForex

EURUSD: Bearish retracement from 3-month high price continues

Yesterday’s signals were not triggered as there was no bearish price action at 1.1375.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken between 8am and 5pm London time today only.

Short Trade

  • Go short following upon the next touch of 1.1477.

  • 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 Trade

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1312.

  • 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.

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EUR/USD Analysis

I wrote yesterday that if the price could get established above 1.1375 and begin using it as support again, I would take a bullish bias as we still have a longer-term bullish trend with possible residual momentum. However, if the price stayed below 1.1375 all day, that would be a bearish sign that an increasing pullback was likely. This was a relatively good call as the price was not able to get established above 1.1375 although it did spend a little while above that level, so overall it is logical that the price did not move much – this level was a good benchmark to watch yesterday.

The picture now is a little more bearish as the price has not rallied yet and the short-term picture suggests the price is going to be trading below the 1.1350 soon. This could see a move down to test the nearest support level at 1.1311. I would take a bullish bias if we get a drop to that level and a firm bullish bounce between 9am and Noon London time today, as we still have a long-term bullish trend liable to reassert itself.EUR/USD Forex Signal | DailyForexThere is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of Final GDP data at 1:30pm London time.

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