EUR/USD Forex Signal – 17 January 2019

EUR/USD Forex Signal – 17 January 2019

Yesterday’s signals were not triggered, as the bearish price action took place about 10 pips above the resistance level identified at 1.1416.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1425, 1.1455, or 1.1486.

  • Put 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 Trade

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1306.

  • Put 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.

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 1.1416 now seemed to be acting as resistance, which was a bearish sign. However, I noted that the price is still within its long-term area of consolidation, so bears should not get too excited yet. I was looking for a return to 1.1455 before taking a bearish bias. I should have looked to 1.1425 but overall this was a good enough approach to stay out of trouble.

The Forex market is generally very quiet, and there is little change to yesterday’s situation. I would be prepared to take a bearish bias if we get a retrace to and reversal at either 1.1425 or 1.1455.EURUSDThere is nothing important due regarding either the USD or the EUR.

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