My previous EUR/USD signal on 15th April was not triggered, as unfortunately the bullish price action took place just below the support level at $1.0611.
Today’s EUR/USD Signals
- Risk 0.75%.
- Trades may only be taken between 8am and 5pm London time today.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0799, $1.0848, or $1.0872.
- 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 $1.0758, $1.0739, or $1.0723.
- 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 about one month ago, I said that although the technical picture was a little more bearish, I thought that the price was likely to range between $1.0610 or $1.0699. I was basically correct, although the price action did not respect the support at $1.0610 precisely.
The technical picture is still consolidative, with the price continuing to trade sideways between $1.0800 and $1.0723. The shift to $1.0723 as a base for this range a few days is a weakly bullish development. Therefore, it makes sense to take a weak bullish bias, which suggests that a long trade from a bullish bounce from a nearby support level such as $1.0758 would be the best potential opportunity today.
However, the resistance confluent with the round number overhead at $1.0800 looks very strong, so it might be wise to take at least some profit at that level to make sure the trade gives a small overall profit whatever happened next.
Today’s major pivotal point looks likely to be $1.0800. Other opportunities which might set up today would be a short trade from a bearish reversal at $1.0800 if it is hit, or a long trade following a bullish breakout beyond $1.0800.
I think the range between $1.0800 and $1.0723 is likely to hold today in the absence of any major scheduled data releases, and as it is a Monday which is typically a quiet day of the week in the Forex market.
There is nothing of high importance scheduled today concerning either the EUR or the USD.
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