EUR/USD Signal Today 12/03: Bullish Above $1.0882 (Chart)

(MENAFN- Daily Forex) My previous EUR/USD signal on 5th March was not triggered, as there was insufficiently bearish price action when each of the nearby resistance levels were first reached..

Today's EUR/USD Signals

Risk 0.75%.

Trades may only be entered prior to 5pm London time today.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Short Trade Idea

• Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0938, $1.0951, or $1.0986.
• 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.

Long Trade Ideas

• Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.0882, $1.0805, or $1.0772.
• 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.

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.

EURUSD Chart by TradingViewEUR/USD Analysis

In my previous EUR/USD analysis last Wednesday, I wrote that the EUR/USD currency pair was likely to keep rising, at least until a compromise was announced concerning the new American tariffs.

This was a good call, as the price has continued to rise over the past week.

The technical picture has basically been very bullish, due to the Euro's relative strength and the US Dollar weakening firmly as the tariff war shows no end in sight. This has sent the price consistently higher into blue sky to reach new 4-month record high prices.

Many trend traders may be holding back from going long here for two reasons:

The 50-day moving average is still below the 100-day moving average, which is a key trend-following filter used to qualify trends.
The strength of the run up suggests that the price will snap back.

It is clear there is at least a short-term bearish reversal from the hourly pin bar which rejected the resistance level at $1.0938, but the wave down looks secondary rather than impulsive. So, as long as the price holds up above the support level of $1.0882, the outlook must be bullish.

A long entry following a bullish bounce rejecting $1.0882 could be an interesting trade.

There is nothing of high importance due today concerning the Euro. Regarding the USD, there will be a release of US CPI (inflation) data at 12:30pm London time.

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