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

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

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This area could still be a great opportunity for a long-term short trade.

Yesterday’s signals were not triggered, as the bullish price action took place below the support level identified at 1.1887.

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 1.1964 or 1.2005.

  • 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 1.1929, 1.1887, or 1.1848.

  • 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 strong upwards movement and test of resistance at 1.1929 produced a much more bullish picture and possibly the start of a long-term bullish breakout trend. I was interested in buying at support levels when confirmed by price action but still cautious about the fact that the price faces an area of strong long-term resistance between 1.1929 and 1.2000 where we may well see a long-term bearish reversal.

This was a good call as far as it went – I was hedging my bets somewhat. However, I was right about buying on a dip to support, although unfortunately the support level at 1.1887 was not respected precisely enough to generate a long trade entry signal.

The bullish movement has continued, with the price in recent hours breaking above the former key resistance level at 1.1929, which is a bullish sign if the price will hold above that. The price again yesterday closed at a new 50-day which puts the odds of a further price rise today at about 53%. Now that the resistance at 1.1929 has been cleared, the price can have a free run to reach the next resistance level at 1.1964.

Although the technical signs are all bullish, I still fear that this area of long-term resistance we have reached – especially the confluence of horizontal resistance at 1.2005, and the huge round number at 1.2000 – will be too much weight for the price to make a fast bullish break above that area over the short term. This area could still be a great opportunity for a long-term short trade, but if the price gets established above 1.2000, that will be a major bullish sign and will likely presage a stronger bullish move.

I will be happy to buy from bounces at any support levels which are reached on dips today.EUR/USDThere is nothing of high importance scheduled today regarding either the EUR or the USD. It is a public holiday in the U.S. today.

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