My previous EUR/USD signal on 22nd May was not triggered as none of the key support or resistance levels were reached that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken prior to 5pm London time today.
Short Trade Idea
- Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1367, $1.1402, or $1.1430.
- 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
- Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1295, $1.1248, or $1.1227.
- 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.
Top Regulated Brokers
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.
EUR/USD Analysis
In my previous EUR/USD analysis about a week ago, I thought that the EUR/USD currency pair was likely to reach the support level at $1.1280, or at least $1.1290 if it did not make it all the way. This was a good call, with the price going even lower than that area, so it was a good signal for the day. However, over the next days, the bearishness did not last.
The technical picture now is showing a selloff over recent days, but we have what may be a bullish double bottom rejecting the support level at $1.1300 confluent with the round number. However, so far, the bounce looks very weak, which suggests that this level may well break down.
As I think $1.1300 is likely to be today’s pivotal point, I see two consecutive lower hourly closes below that level as a good signal for a short trade entry, provided the price is still far enough away from the next support level at $1.1248 – let’s say the big quarter-number at $1.1250 – to justify the risk to the potential reward.
There is nothing due today regarding the Euro. Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.
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