SIGNAL FOREX

EUR/USD Forex Signal: Bounce at Support 1.1726 – DailyForex.com


EUR/USD: Bullish trend still valid

Yesterday’s signals produced a long trade entry from the bullish pin candlestick on the hourly chart which rejected the support level at 1.1770. This has about a maximum of 25 pips of profit before getting stopped out at breakeven.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken before 5 pm London time today.

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1770 or 1.1826. 
  • Put 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 1.1726, 1.1684, or 1.1638. 
  • Put 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 yesterday that the price of this currency pair was well within its multi-week range, but we looked somewhat likely today to get more upwards movement as the price seemed to have gotten established above the formerly strong area of resistance at about 1.1770.

I was happy to take a long trade from a bullish bounce at any of the three nearest support levels.

This was a good call as the support level at 1.1770 held and produced a trade with about 25 pips of profit. However, later on during the New York session, the Trump administration announced it would be giving up on agreeing a new stimulus package before the Presidential election on 3rd November. This knocked riskier assets and boosted safe havens for a few hours, notably the U.S. Dollar.

This fall was fairly sharp and the action it produced cut through and invalidated some support levels.

The standout support level is now sitting at 1.1726 and we have seen a bullish turn there in recent hours, although the recovery has been stronger in other “risk” assets such as the Australian Dollar.

As long as the support at 1.1726 holds up, it should be worthwhile respecting the medium-term bullish trend.

EUR/USD

Concerning the EUR, the President of the ECB will be giving a minor speech at 1:10 pm London time. Regarding the USD, there will be a release of FOMC meeting minutes at 7 pm.

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