EUR/USD Forex Signal 19/02: Bearish Below $1.1805 (Chart)

(MENAFN- Daily Forex) My previous EUR/USD signal yesterday may have produced a losing long trade from the bullish rejection of $1.1831.

Today's EUR/USD Signals

• Risk 0.75%.
• Trades must be taken before 5pm London time today only.

Short Trade Ideas

• Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1805, $1.1828, or $1.1856.
• 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 $1.1766 or $1.1760.
• 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/USD Analysis

In my previous EUR/USD analysis yesterday, I thought that if the the EUR/USD currency pair got established above $1.1856, that would be a bullish sign, as this was likely to be the day's pivotal point.

I was correct in a sense, as the price descended but never even tested that level. I was wrong to be looking to the long side.

The price broke down and found support below $1.1800 and has made quite a convincing short-term bullish reversal, which is now threatening to break above the nearest resistance level at $1.1805. This is despite the firming of the US Dollar yesterday, so it looks like we are getting some strength in the Euro right now.

Despite this short-term bullishness, I still see a bearish outlook due to the medium-term trend, although I am not a strong believer in it. For today at least, I will still be ready to take a short trade from a bearish reversal at either of the two nearest resistance levels. Yet I have to say, the strong bullish reversal below $1.1800 does not fill me with great confidence on the short side.

There is nothing scheduled today concerning the Euro. Regarding the US Dollar, there will be a release of FOMC Meeting Minutes at 7pm London time.

Ready to trade our daily Forex signals? Here is our list of the top 10 Forex brokers in the world worth reviewing.

MENAFN19022026000131011023ID1110764765