SIGNAL FOREX

EUR/USD Forex Signal: Medium-Term Bullish Trend Continues – DailyForex.com


The 1.1761 level looks pivotal as current basing support.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered prior to 5pm London time today.

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1800, 1.1831, or 1.1855.

  • 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

  • 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 key thing to watch for in this currency pair was whether the resistance level at 1.1750 held. I said that if we got two consecutive hourly closes above 1.1750, the price would be likely to continue to rise to at least 1.1800.

This was a reasonably good call as 1.1750 did not hold, was invalidated by choppy price action, and once we finally got two consecutive hourly closes above that level, the price continued to advance slowly. The price is now 8 pips higher than the entry point – nothing huge, but its better than a loss.

We see the technical picture now looking somewhat more bullish as not only has 1.1750 broken, but there is also a new higher pivotal flipped support level at 1.1761. If this support level holds up, we are likely to see continued upwards movement to 1.1800 and maybe beyond.

The round number at 1.1800 may prove to be resistant, and the next level above that – 1.1855 – is confluent with a long-term price channel trend line, so that could be a major zone to trigger a bearish reversal.

It is likely that we will some much higher volatility and directional price movement in this currency pair today when some word from the Fed emerges from the Jackson Hole Symposium about QE tapering timing.

I am happy to take a long trade from a bullish bounce at 1.1761 or a short trade from a bearish reversal at either 1.1800 or 1.1855.

EUR/USD

Concerning the USD, there will be a release of preliminary GDP data at 1:30pm London time, while the Jackson Hole Symposium will be taking place all day. There is nothing of high importance scheduled today regarding the Euro.

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