EUR/USD Forex Signal  – 16 April 2018

EUR/USD Forex Signal – 16 April 2018

By: DailyForex.com

Last Thursday’s signals produced a break-even long trade from the bullish engulfing candlestick which rejected the support level identified at 1.2330.

 

Today’s EUR/USD Signals

Risk 0.75%.

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

 

Short Trades

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2347 or 1.2384.

* 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.

* Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

 

Long Trades

* Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2304 or 1.2260.

* 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.

* Remove 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.

 

EUR/USD Analysis

I wrote last Thursday that I maintained a bullish bias, but I was also open to the possibility that the level at 1.2384 could continue to hold and form a bearish double top. In the end, 1.2384 held without being reached again, but the support at 1.2304 also held. The move down printed new resistance at 1.2347. This gives us a picture where the long-term bullish trend still looks quite healthy, with the current bearish action looking like only a pause in the trend. I maintain a bullish bias and have a lot of confidence in these levels, as this pair seems to be respecting technical levels strongly right now. Despite the bullish trend, it is notable that the Pound is relatively stronger than the Euro, so it might be better to trade GBP/USD long than EUR/USD if you are looking to be short of the U.S. Dollar.

eurusd

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

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