EUR/USD Forex Signal | DailyForex

EURUSD: Bearish retracement from 3-month high price continues

Last Thursday’s signals were not triggered, as neither of the key levels were reached.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1345.

  • 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

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1312 or 1.1271.

  • 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.

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EUR/USD Analysis

I wrote last Thursday that the situation had become a little more bearish as the price had not rallied yet and the short-term picture suggested the price was going to be trading below the 1.1350 soon. This could see a move down to test the nearest support level at 1.1311. This did not happen that day but appears to be playing out now as we get a break below the former support level at 1.1345 which may now have become new lower resistance. However, the price is arguably still within a broader supportive area.

The Dollar has got a boost as risk sentiment improves and the U.S. stock market trades to a new all-time high. The Euro has acted as a bit of a safe haven recently and so has sold off a little. This suggests that we are going to see a more bearish environment for this currency pair now and I think if the price starts to head down further and break below 1.1311, we will probably see stronger falls. The détente between the U.S. and North Korea plus announcement of new talks with China over the trade dispute is helping risk-on sentiment.EUR/USD Forex Signal | DailyForexThere is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.

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