EUR/USD Forex Signal - August 8, 2016

EUR/USD Signal Update

Last Thursday’s signals were not triggered.

Today’s EUR/USD Signals

Risk 0.75%.

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

Long Trades

Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1049.
Put the stop loss 1 pip below the local swing low.
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 ride.

Short Trades

Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1119, 1.1162 or 1.1188.
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 ride.

EUR/USD Analysis

Last Friday’s very positive Non-Farm Payrolls data sent this pair plummeting to a level just below 1.1050, but the price has recovered from there quickly and strongly. At the time of writing, it is testing the key level of 1.1105. Although this has been a pivotal point, the level a little further above at 1.1119 looks more crucial, so I would wait for a reversal there before considering entering a short trade.

For the first time in a long while, the price of this pair is below its levels from both three months ago and six months ago. For a major pair like EUR/USD this is a significant development and points to a long-term downwards trend, giving a bearish bias that can statistically be taken advantage of.

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