Home Forex Signals EUR/USD Forex Signal: Bullish Move Breaks 1.1000 – DailyForex.com

EUR/USD Forex Signal: Bullish Move Breaks 1.1000 – DailyForex.com

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The E.U. announced a large new stimulus package yesterday and although this can devalue the Euro over the long term, over the short term it seems to be boosting the Euro.

Wide bullish price channel pushing price up

Yesterday’s signals were not triggered as the initial rejection of support produced too large a candlestick, although if an entry were taking there it would be surviving now at about break even. The support at 1.0954 was tested later in the day after London closed and held to the pip.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade Idea

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1056.
  • 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 1.0954 or 1.0915.
  • 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.

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 although the price was likely to rise over the course of the day, we were still liable to see resistance at the big round number of 1.1000 so a strong bearish reversal there is a possibility. I would be careful remaining in a long trade when 1.1000 is reached. However, I was happy to take a long trade from a bullish bounce at 1.0954.

This was a good call as the support at 1.0954 held, the price rose over the day, but so far has been able to rise much above 1.1000.

The outlook here is bullish. Technically the price is printing higher and higher support levels, notable above 1.0950 which had been resistant for a long time. The bullish symmetrical price channel shown in the price chart below continues to hold, which is another bullish factor.

Risk appetite is firm, and the Euro is benefitting from that as it is considered a riskier currency than the Dollar. The E.U. announced a large new stimulus package yesterday and although this can devalue the Euro over the long term, over the short term it seems to be boosting the Euro.

I am happy to be long of this pair until at least 1.1056 is reached provided the support at 1.0954 continues to hold.

Despite the bullish outlook, a strong bearish reversal at 1.1056 could be an interesting short trade as it is long-term resistance and caps a long-term price range.

EUR/USD

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

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