EUR/USD Forex Signal - Monday, Oct. 16 -

EUR/USD Forex Signal – Monday, Oct. 16

Oct 16, 2017Jeremy ParkinsonFinance0

Today’s EUR/USD Signals

Risk 0.75%.

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

Long Trade 1

Go long following a strong bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1780.

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.

Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Short Trade 1

Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1891.

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.

Take off 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

The price rose steadily for the first half of last week, in line with the long-term bullish trend in this pair, but it was unable to crack the medium-term bearish trend line at about 1.1875. After rejecting this line, the price has fallen continually, and is now sitting right on an area of key support that stretches from about 1.1802 to 1.1780. As the area at 1.1800 has already been touched with little reaction, I look to the lower boundary at 1.1780 for a potential long trade entry. There is little news today so I think it will probably hold if reached, as it should be a relatively quiet trading day.