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EUR/USD Forex Signal: Consolidating Below $1.0848

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.

Consider short trades at $1.0848, longs near $1.0799. Market shows uncertainty; focus on careful trading strategies. Analysis advises vigilance.

My previous EUR/USD signal on 26th March produced a profitable short trade from the resistance level which I had identified at $1.0855.

Today’s EUR/USD Signals

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

EUR/USD Signal Today - 08/04: EUR/USD Near $1.0848 (Graph)

Short Trade Ideas

  • Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0848, $1.0872, or $1.0920.
  • 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 $1.0799, $1.0781, or $1.0744.
  • 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.

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EUR/USD Analysis

In my previous analysis of the EUR/USD currency pair almost two weeks ago, I wrote that although there was a descending trend line above, as there were several support and resistance levels so close by, the price was likely to range and be prone to reversals. I also thought one of the best chances for a trade entry would be a short trade off $1.0855.

Both were good and accurate calls.

The technical picture now looks uncertain, with no real direction or momentum in this currency pair, which has been going sideways for quite some time.

I think the best approach on what is likely to be a quiet Monday will be to look for a long scalp off $1.0800 or a short scalp off $1.0848.

There is nothing of high importance scheduled today concerning either the EUR or the USD.

Ready to trade our daily Forex signals? Here is a list of the top Forex brokers you should check 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.

 

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