EUR/USD Forex Signal - Tuesday, July 11

Yesterday’s signals were probably not triggered as the bullish price action took place a little way below the support level identified at 1.1388.

Today’s EUR/USD Signals

Risk 0.75%.

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

Long Trades

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1382 or 1.1295.
• Place 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.
• 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 Trade 1

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of the bearish trend line which is currently sitting at about 1.1435.
• 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 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

The price did very little yesterday, which is not surprising as it was Monday and there was no high-impact news scheduled for either currency. The only adjustment from yesterday is to move the likely closest support level down a little, by just a few pips. There is still a bullish pattern with recent new 1-year high prices being made. However, the trend line which was hit on Friday, shown at the top of the chart below is a very long-term bearish trend line which may hold the price within this historically very resistant area. I maintain a bullish outlook but am cautious of the trend line currently sitting at about 1.1435.

(Click on image to enlarge)

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