November 18, 2008 04:23

Forex Signals – EUR/USD Bearish Signals

By:

11-18-08

3:17a GMT – Yesterday’s forex signal was for a bearish reversal for the EUR/USD pair. We saw this bearish reversal just underneath resistance at 1.2750 and the pair has since dropped over 100 pips to 1.2600 and I expect the bearish outlook to continue down to at least 1.2500.

Trading Idea: Holding current shorts to 1.2505 and eventually 1.2350 is preferred. If you are looking for an entry point shorts are preferred and resistance at 1.2750 might be a good rally point to look to reset a short trade.

(click to enlarge)
 

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5 Comments on "Forex Signals – EUR/USD Bearish Signals"
  1. Reply
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    Comment left on:
    November 18, 2008 at 04:45
    DK says:

    Can you please explain what you regard as a bearish reversal signal?

  2. Reply
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    Comment left on:
    November 18, 2008 at 04:54
    lloyd says:

    good signal by the end of the week i expect it to reach 1.2350

  3. Avatar of piphut
    Reply
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    Comment left on:
    November 18, 2008 at 04:57
    piphut says:

    Great question and I’ve been meaning to write an article on this for awhile (just trying to find the time). Traders use a variety of reversal signals whether it is a candlestick signal, an oscillator, other technical indicator or a fundamental announcement.

    What I prefer personally are candlestick signals with an eye on fundamentals. By definition candlesticks are lagging indicators (meaning they tell you what has already happened) whereas fundamentals (such as the Fed announcing a rate change) can be a leading indicator (telling you where price is going to go in the future).

    Since I don’t have any good examples to show you until I write that article I would recommend doing a google search for “bearish candlestick signals”.

    Another trading system that is generally used in combination with technical indicators is to wait for the price to go above your resistance level and then place a sell entry just below the resistance. So for example if your resistance was at 1.2750 in the chart above you would wait for the pair to make a clear break of that level and then place a sell entry order at 1.2745. If and when a reversal happened and the pair turned around it would trip your order on the way down. This helps to weed out catching the pair as it blasts through your resistance and allows you to catch the pair on the way down, in the direction of your trade. The same can be done in reverse for support levels.

  4. Reply
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    Comment left on:
    November 18, 2008 at 23:09
    Domaineroo says:

    You should add a more clear link to the home page on all internal pages, specifically when visiting the Forex Discussion Forum.

    The only link I can find thus far is the PipHut.com in the upper left corner.

    I’m sure other visitors will appreciate this addition as well.

  5. Reply
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    Comment left on:
    November 19, 2008 at 02:09
    Drsallfx says:

    How to use dolly vs 10 Graphic Chart Forex

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