EUR/USD Forex Signal  – 12 April 2018

EUR/USD Forex Signal – 12 April 2018

By: DailyForex.com

Yesterday’s signals could have produced a short trade from the rejection 1.2384, but the bearish price action was quite weak.

 

Today’s EUR/USD Signals

Risk 0.75%.

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

 

Short Trade

· Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2384.

· 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.

· Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

 

Long Trades

· Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2330 or 1.2304.

· 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.

· Take off 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.

 

EUR/USD Analysis

I wrote yesterday that indications were that the price would continue to rise but may face resistance at 1.2384. This is what happened, with the price initially looking strongly likely to break out, but in the end the resistance held. The hawkish FOMC minutes release later pushed the price down. However, as at the time of writing, the price looks as if it may make another attempt at the level. As there is a long-term bullish trend, and no change at all to the technical picture, I maintain a bullish bias, but I am also open to the possibility that the level at 1.2384 could continue to hold and form a bearish double top.

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Concerning the EUR, there will be a release of ECB Monetary Policy Meeting Accounts at 12:30pm London time. There is nothing due regarding the USD.

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