SIGNAL FOREX

EUR/USD Forex Signal: Bullish Reversal Near Long-Term Low – DailyForex.com


EUR/USD: Poor coronavirus situation in Eurozone

Yesterday’s signals were not triggered as neither of the key levels were reached.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1704 or 1.1767.

  • Place 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 Idea

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1517.

  • Place 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 yesterday that the price was currently trading a little way below a support level I identified at 1.1638. This was good level to watch – if it held up going into the first hour or two of today’s London session, it would be less likely to fall.

I was ready to take a short trade if the first two hours of the London session saw closes below 1.1627 or if there was a New York close below that level at the end of today.

This was good enough to stay out of trouble, as there were no hourly closes below 1.1627 during yesterday’s London session.

We have seen a small but significant bullish recovery from this price area after the level at about 1.1627 was hit, showing the price is unwilling to make this technically significant breakdown yet. However, this bullish recovery does not look very strong overall.

A new higher support level can be drawn at 1.1656, but the level looks very debatable, so I do not want to take a long trade from there.

Fundamental factors are tending to weaken the Euro. However technical analysis is hampered today by the fact that the U.S. presidential election is taking place which could produce market volatility as rumours emerge throughout the day. Even after the polls close, it is likely that there will be no clear result for some days.

As a technical trader, I will take a short trade if today’s New York close is below 1.1627.EUR/USD

There is nothing of high importance due today concerning the EUR. Regarding the USD, voting is underway in the U.S. presidential election.

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