EUR/USD Forex Signal – 16 August 2018

By DailyForex

Yesterday’s signals were not triggered, as the bullish price action took place between the two support levels at 1.1308 and 1.1296.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be entered before 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 1.1433 or 1.1496.

— 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 Trades

— Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1308 or 1.1296.

— 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 that I was ready to be bearish once the short-term bullish retracement ended. This happened, and gave about 35 pips on the short side, before the price bounced up strongly from the zone of two support levels at around 1.1300. The price has since recovered strongly to trade not far below the next round number at 1.1400. So, we have a strong bullish retracement within a long-term bearish move. The next resistance level at 1.1433 is likely to be very key. If that is broken, then this bullish movement becomes more than a small retracement.

The short-term price action looks bullish, but it is a move that cannot be traded without great care.

I take no directional bias today unless the price gets back below the new support at 1.1365 soon, which would be a bearish sign.

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

This article provided by NewsEdge.