SIGNAL FOREX

EUR/USD Forex Signal: Bearish Below 1.1807 – DailyForex.com


The price continues falling with a long-term downwards trend.

Last Tuesday’s EUR/USD signals were not triggered, as there was no bullish price action at any of the identified support levels which were reached that day.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered before 5pm London time today.

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1807, 1.1831, or 1.1852.
  • 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 time frame immediately upon the next touch of 1.1772, 1.1754, or 1.1733.
  • 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

I wrote last Tuesday that in the unlikely event that the price got established below 1.1850, that would be a bearish sign.

I thought it would be best to stand aside from trading this pair for another day and watching what happens in the hope that the technical picture will become clearer.

This was a very good call, as the price did break strongly below 1.1850, and then moved lower still the next day, meaning a short entry after waiting as I suggested gave an opportunity for a profitable trade already.

The USD got another boost yesterday, albeit a relatively small one, from the FOMC Meeting Minutes release, sending the price here down to another 50-day low closing price, which suggests we will continue to see still lower prices over the coming days. We have a valid and active long-term bearish trend.

I see the best approach here as only looking to take short trades, from firm bearish reversals following retracements to resistance levels. A key level to watch is 1.1807, which seems to be holding at the time of writing as we approach the London open.

Even if today is an up day, we are still likely to see a down day on Friday.

EUR/USD

Concerning the USD, there will be a release of unemployment claims data at 1:30pm London time, followed by Crude Oil Inventories data at 4pm. There is nothing of high importance concerning the EUR scheduled today.

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