SIGNAL FOREX

EUR/USD Forex Signal: Consolidation Above $1.1301 – DailyForex.com


The pair’s direction is unclear ahead of tomorrow’s US inflation data release.

Last Thursday’s EUR/USD signal was not triggered as none of the key support or resistance levels which were identified that day were reached during the London session.

Today’s EUR/USD Signals

Risk 0.75%.

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

  • 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.

  • 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

  • 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.

  • 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 Thursday that we had a medium-term bullish picture, with the price finding support at the $1.1234 level and then at $1.1305, confluent with the round number, and the price was making a bullish consolidation there. It seemed poised for a further advance.

I thought that the best approach would be to look for a long trade from the next bounce at $1.1305 and that the resistance level just below $1.1400 was very likely to hold over the day.

I was a little wrong, but not by much.

The picture now is largely unchanged, we have continued to see the price mostly consolidate with low volatility. Forex markets in general have done little this week because the market is waiting for two things: Friday’s US CPI (inflation) data release, and more clarity on the likely impact of the omicron coronavirus variant. As we are unlikely to get any major data on omicron for a few more days at least (although very early data is arguably encouraging), the price of this currency pair will probably move little today.

Despite the lack of direction and volatility, it can be said that we have seen a bid in the euro over the last day or so, and so it may well be that the short-term bearish retracement ends with a bullish bounce at the support level (very confluent with a round number) at $1.1301, so a scalp from that price if reached could be a nice trade opportunity today. We may also be seeing higher support forming at $1.1316.

I also think the price will be extremely unlikely to break above $1.1400 today, so if that round number is reached, there could also be an opportunity for a short scalp.

We will probably see a lot of action in this currency pair during tomorrow’s New York session.

EUR/USD

There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.

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