SIGNAL FOREX

EUR/USD Forex Signal: Bearish Turn Begins Below 1.2000 – DailyForex.com


Support level at 1.1903 looks pivotal.

Last Thursday’s EUR/USD signals produced a long trade entry from the strong bullish bounce at the support zone identified at 1.1910 / 1.1920, but it only made the minimum 20 pips of profit before turning round to stop out at break even.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken between 8am and 5pm London time today only.

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1983 or 1.2047.
  • Put the stop loss 1 pip above the local swing high.
  • Adjust the stop loss to break even once the trade is 20 pips in profit.
  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Long Trade Ideas

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1903, 1.1882, or 1.1851.
  • Put the stop loss 1 pip below the local swing low.
  • Adjust the stop loss to break even once the trade is 20 pips in profit.
  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

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 Thursday that the line of least resistance seemed to be upwards, but it was worth watching the support levels nearby especially 1.1920. If that and 1.1910 broke down, we would be very likely to reach 1.1884.

This was a good call as the support zone between 1.1910 and 1.1920 held and pushed the price up over the day, which ended as an up day.

The technical picture has changed little, except the pivotal support seems to be a little lower, at 1.1903, and this looks likely to be a firm support level.

The bigger picture is one of a bearish turn beginning to look decisive below 1.2000. This longer-term bearish picture is why I think that the best opportunity that might arise here would be a bearish breakdown below 1.1900 and then 1.1882, targeting 1.1851. Yet to trade this, bears should be very cautious as reversals can happen easily at both levels. Bears will not be in “blue sky” until the price gets below 1.1851.

I will try to take a short trade from 1.1900 on a short time frame once we have had an hourly close below that level and try to take the risk off the trade once 1.1882 is reached.

EUR/USD

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

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