SIGNAL FOREX

EUR/USD Forex Signal: Bulls Running Out of Momentum – DailyForex.com


EUR/USD: Strong resistance holding at 1.1775

Yesterday’s signals produced a long trade from the bullish bounce at the support level of 1.1693. This trade is in a small floating profit and should probably be exited as the bullish move appears to be running out of momentum.

Today’s EUR/USD Signals

Risk 0.75%.

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

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1775 or 1.1826. 
  • 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 Ideas

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1716, 1.1693, or 1.1638. 
  • 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.

Advertisement

EUR/USD Analysis

I wrote yesterday that it looked likely that we would see the price rise to test the next resistance level at 1.1775. I did not think we would see a close above that level at the end of the New York session.

I was wrong about the price rising to 1.1775 but I was right about the level holding.

The price came down yesterday before making a bullish bounce at the support level at 1.1693 and also re-establishing the higher support level at 1.1716.

For a second time over the past day or so, a bullish wave appears to be running out of steam in the 1.1750 area.

I see the resistance level at 1.1775 as likely to remain strong while bulls seem to be running out of steam. This suggests that some kind of bearish retracement is due.

If the price can get established above 1.1775 later, that will be a bullish sign.

EUR/USD

There is nothing of high importance scheduled today concerning the EUR. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3 pm London time.

Let’s block ads! (Why?)


Scalping Strategy Course (DVD + Online) - $299.00

In the much anticipated Forex Scalping Strategy Course, Vic and Sarid show you short-term focused techniques and strategies to make quicker profits while reducing market exposure.




Forexmentor Coach's Corner First Month (Online) - $149.00

The Coach's Corner offers 2 live sessions per week, an integrated approach to trading, FREE access to the VicTrade video course and Darko's Pattern Trading Video Lessons.



Source link

Have your say