My previous EUR/USD signal on 24th November was not triggered, as the bullish price action took place just below $1.0406.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade Idea
- Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0486 or $1.0447.
- 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.
- Take off 50% of the position as profit when the price reaches 50 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.0484 or $1.0447.
- 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.
- Take off 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
In my previous analysis of the EUR/USD currency pair on 24th November, I thought that the recent rise was beginning to run out of steam, so I thought that the price action was likely to be relatively flat over the day. I was correct about that, but wrong about the former support level at $1.0406 being the day’s pivotal point.
The technical picture has become considerably more bullish over the past 2 or 3 weeks since my last forecast on this pair, with the price continuing to rise steadily and break to new multi-month highs above $1.0500. Importantly for trend traders, the 50-day moving average has crossed above the 100-day moving average, creating a valid bullish filter for long traders hoping to ride the ongoing bearish trend in the US Dollar.
Despite the long-term bullish technical picture, there are some signs that the bullish move is beginning to stall or at least pause, with the price forming a chart pattern suggesting a bearish double top not far from the round number at $1.0600.
Despite this short-term bearish hint, long trend traders should not be too concerned yet, as this currency pair typically makes deep counter-trend retracements.
Due to the bullish trend, I see potential opportunities here for swing traders if we get a touch and bullish bounce later today at either $1.0484 or $1.0447.
I am currently long of this currency pair.
There is nothing of high importance due today concerning either the EUR or the USD.
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