My previous EUR/USD signal on 13th May was not triggered, as the bearish price action took place above the resistance level at $1.0799.
Today’s EUR/USD Signals
- Risk 0.75%.
- Trades must be entered before 5pm London time today.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0920, $1.0945, or $1.0998.
- 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 $1.0863, $1.0836, or $1.0821.
- 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.
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EUR/USD Analysis
In my previous analysis of the EUR/USD currency pair one week ago, I wrote that the picture was still consolidative, with the price continuing to trade sideways between $1.0800 and $1.0723. I thought that the day’s major pivotal point looks likely to be $1.0800.
This was a fairly good call although I was a little off, with the high of the day coming a few pips above $1.0800.
The technical picture has become more bullish, with the Euro one of the strongest major currencies. However, the US Dollar is consolidating, and its next directional move looks very unclear.
It looks like the price is going to make a bearish retracement to the support level at $1.0863 which might be today’s pivotal point.
Even if there is an opportunity for a long trade today off $1.0863, we may be seeing new resistance forming at $1.0881 which could limit any later advance by the price.
It might be wise to avoid trading this currency pair today and to look at trading major stock indices or precious metals like Gold and Silver.
There is nothing of high importance scheduled today concerning either the EUR or the USD. It is a public holiday in Germany and France.
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