EUR/USD Forex Signal: Weakly Bullish Above $1.1578

My previous EUR/USD signal last Tuesday gave a losing short trade from the bearish rejection of the resistance level at $1.1532.

Today’s EUR/USD Signals

• Risk 0.75%.

• Trades must be taken prior to 5pm London time today.
  

Short Trade Ideas

• Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1640, $1.1662, or $1.1672.

• 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.
  

Long Trade Ideas

• Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1577, $1.1525, or $1.1486.

• 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.

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.

In my previous EUR/USD analysis last Tuesday, I thought that the EUR/USD currency pair was looking bullish, but I was expecting bulls to run out of momentum.

I thought that the resistance level of $1.1532 could be pivotal and I was almost right – the swing high was a few pips above that level.

The technical picture has continued to be bullish, with the price chart below showing a clear succession of higher lows on a stairstep basis over almost two weeks now.

I think rejections of either of the two nearby support levels, especially the one just below the price as the London open was approaching at $1.1578, would create attractive entry opportunities for a long trade.

The price will likely find it hard to break above the cluster of three resistance levels between $1.1640 and $1.1672, so that will probably be a natural ceiling today.

There is nothing scheduled today concerning either the Euro or the US Dollar.