My previous EUR/USD signal on 21st October gave a profitable short trade from $1.1628.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1547, $1.1587, or $1.1608.
- 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 $1.1498 or $1.1407.
- 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.
Top Forex Brokers
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 EUR/USD analysis a little more than two weeks ago, I thought that the EUR/USD currency pair was presenting a technically bearish price channel, so I saw the best opportunity as a short trade from the upper trend line or lines and the horizontal resistance level at $1.1640.
The price did not make it back up to $1.1640 that day, but I was correct to look to the short side, as the price fell over the day, giving the opportunity to take a profitable short trade from the nearest resistance level at $1.1628.
Recent weeks have seen the US Dollar finally make a bullish breakout and establish a new dominant bullish trend, and this continued to push this currency pair lower, to make a new 3-month low price. However, we have seen what looks like a bullish reversal over the past couple of days as the US Dollar finally takes a bit of a hit. This bullish break is also confirmed technically by the breakout from a bearish descending linear regression analysis price channel, which can be seen in the price chart below.
Despite these bullish factors, the long-term trend is certainly bearish, and the bullish move is relatively small and weak, so I would not put much faith in it. However, we are quite a long way from the nearest resistance level at $1.1547, so I do not see much scope for a short trade entry.
For this reason, I think the price is quite likely to rise to that area, so a long trade from a bounce at the nearest support level of $1.1498, which is confluent with the big round number at $1.1500, is likely to be the best day trade that might set up today.
Top Forex Brokers
There is nothing of high importance due today regarding either the Euro or the USD.
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