EUR/USD Forex Signal 02/09: Bullish Consolidation (Chart)

(MENAFN- Daily Forex) My previous EUR/USD signal yesterday likely gave a losing long trade entry yesterday.

Today's EUR/USD Signals

Risk 0.75%.

Trades must be taken before 5pm London time today Trade Idea

• Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1787.
• 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 $1.1685, $1.1655, or $1.1625.
• 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.

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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/USD Analysis

In my previous EUR/USD analysis yesterday, I wrote that the EUR/USD currency pair was looking bullish over the short-term above $1.1688 which was likely to be the current pivotal point.

This was a good call, as the price remained above this level yesterday, and just touched this area today during the Asian session, producing a bullish reversal which might hold.

My outlook today remains bullish, even though we have seen the US Dollar gaining quite firmly over recent hours. Gains by the greenback during the Asian session tend to be typical, so this could easily reverse.

We have a cluster of four evenly spaced support levels between $1.1685 and $1.1601. All look likely to be solid.

We are also towards the lower end of the consolidation range which has been holding for almost a month between about $1.1550 and $1.1750 / $1.1800.

I think a long trade entry from a bullish bounce rejecting any of these levels could be wise.

EURUSD Chart by TradingView

Markets will really come back online today after the August holidays and the public holiday in the USA yesterday, so expect some stronger price movements than those we have tended to see lately. This means taking a trade today if possible is likely to pay off, or at least have the potential to produce a good number of pips of profit.

There is nothing of high importance due today regarding the Euro. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.

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