Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

EUR/USD Forex Signal: Turning Bearish Below $1.0945

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Trend turns bearish below $1.0945 as USD gains strength. Watch for potential short trades and US CPI data for key market directions.

My previous EUR/USD signal on 7th March was not triggered as the bullish price action took place below the support level I had identified at $1.0881.

Today’s EUR/USD Signals

  • Risk 0.75%.
  • Trades may only be taken before 5pm London time today.

EUR/USD Signal Today - 12/03: Turning Bearish Below $1.0945 (Graph)

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0945, $1.0998, or $1.1030.
  • 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.
  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

Long Trade Ideas

  • Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.0914, $1.0867, or $1.0825.
  • 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.
  • Remove 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.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

EUR/USD Analysis

In my previous analysis of the EUR/USD currency pair last Thursday, I wrote that the technical picture had become more bullish, being established above $1.0872. This was a good call as it was this precise level that acted as the low of the day which pushed the price meaningfully higher, although unfortunately I had adjusted the level about 10 pips higher.

The price continued to rise over the past few days, along with a general decline in the US Dollar, and this helped push the price to new highs above $1.0900. However, the resistance level at $1.0945 is looking strong and seems to be pushing the price down. I think the question is whether the $1.0900 area will hold now. If the price breaks below $1.0900 it will likely fall to at least $1.0867.

A short trade from $1.0945 is also a potential setup worth looking out for.

The price will likely consolidate between $1.0914 and $1.0945 until the US CPI (inflation) data release later today, which could push the price anywhere regardless of any technical factors on the chart.

Regarding the USD, there will be a release of CPI (inflation) data at 12:30pm London time followed by the 10-Year Bond Auction at 17:01pm. There is nothing of high importance scheduled today concerning the EUR.

Ready to trade our daily Forex signals? Here is a list of the top Forex brokers worth checking out.

Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

Most Visited Forex Broker Reviews