SIGNAL FOREX

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


The 1.1900 area has sparked a selloff again.

Last Tuesday’s EUR/USD signals were not triggered as none of the key levels identified were reached that day.

Today’s EUR/USD Signals

Risk 0.75%.

Trades my only be entered between 8am and 5pm London time today.

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1850, 1.1895, 1.1908, or 1.1922.

  • 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

  • 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 despite the bullish picture over the medium-term, the area around 1.1900 had acted as a strongly pivotal area, so I was ready to take a short trade from a bearish reversal at any of the resistance levels identified at or below 1.1921.

As can be seen in the price chart below, although this did not set up on Tuesday, my approach gave a nicely profitable short trade from the bearish reversal at 1.1896.

The bearish move is now running out of momentum very close to the support level at 1.1831, and it may rise from there today, but a break below 1.1831 and a further strong fall today is quite possible and would be in line with the long-term bearish trend in this currency pair.

The price has a lot of room to fall below 1.1831 before meeting another potential support level.

Therefore, due to the long-term trend and yesterday’s bearish momentum, I will take a bearish bias if we get two consecutive lower hourly closes below 1.1831 during the first half of today’s London session.

The Bank of England will be giving its monthly policy release today which could produce knock-on volatility in the Euro.

EUR/USD

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

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