EUR/USD Forex Signal – 21 March 2018

EUR/USD Forex Signal – 21 March 2018

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

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 1.2285, or 1.2296.

  • Place 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.

  • 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 was wrong to be cautiously bullish yesterday. The price fell strongly in the face of moderate U.S. Dollar strength, highlighting the relative weakness of the Euro which I have been talking about over recent days. The latest move down originated from a failure close to 1.2359 and is part of a clear medium-term pattern of bearish waves. The pair is technically in a long-term bullish trend, but it is not active and the end of it might even be not far away, if the price falls below 1.2000. There was a support level at 1.2252 which has been invalidated, but it is worth noting that the price made a bullish V shape at 1.2240 from where it is continuing to rise, meaning that it is quite possible that the price will rise a little bit today. When the FOMC releases are due, all bets are off, as it might push the price anywhere. It is safe to say that an FOMC release which is strong for the U.S. Dollar will be likely to be felt as a strongly bearish movement here in this currency pair.EURUSD

There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories at 2:30pm London time, followed by the FOMC Statement, Economic Projections, and Federal Funds Rate at 6pm, followed later by the usual press conference.

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