EUR/USD Forex Signal – 21 January 2019

By Adam Lemon

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

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered before 5pm London time today.

Short Trades

— Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1425, 1.1455, or 1.1486.

— 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.

— 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

— Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1306.

— 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.

— 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

I wrote last Thursday that the market was generally very quiet, and that I would be prepared to take a bearish bias if we got a retrace to and reversal at either 1.1425 or 1.1455. Neither scenario played out, but I was correct to be looking for something bearish as the price has continued to look weak here. In fact, the only thing even close to a long-term trend in the Forex market at present is the weak but real bearish trend here.

The price has been rising over the short-term (past several hours) but appears now to be struggling to rise above the 1.1380 area, which may become new resistance after formerly acting as support. If the price rejects this area strongly and turns bearish with increasing volatility after the London open. I would be ready to take a bearish bias. Ditto for a retrace to and rejection of 1.1425.There is nothing important due regarding either the USD or the EUR. It is a public holiday in the USA.

This article provided by NewsEdge.