EUR/USD Forex Signal – 22 March 2018

Yesterday’s signals were not triggered, as there was insufficiently bearish price action when the price reached the resistance levels.

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 1.2385.

• 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.

• 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 Trade

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2332 or 1.2296.

• 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

Yesterday’s FOMC release was dovish for the U.S. Dollar, so the price of this pair rose in the same way that everything else rose against the dollar. The Euro remains relatively weak compared to other currencies though, and this pair is still stuck within a bearish structure, remaining held down by a medium-term bearish trend line. A break above 1.2385 would be a bullish sign. I have no bias on this pair today as the general sentiment is bearish USD, but this pair is most tradable short so there is a mismatch.

There is nothing due today concerning the EUR or the USD.