EUR/USD Forex Signal

06 June 2017 7:09:16 AM

By: DailyForex.com

Yesterday’s signals were not triggered as the bullish price action took place below 1.1250.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be taken before 5pm London time today.

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1234 or 1.1205.
  • 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.

Short Trade 1

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1295.
  • 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.

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

I wrote yesterday that “recent days have seen symmetrical upwards swings, so going long after the currency pullback completes seems to be the highest probability trade which might arise.” This is exactly what happened over the past 24 hours, although the low was some way below the identified support level at 1.1250. This pair is very bullish and trending strongly, with the Euro showing the greatest long-term strength of any currency. Therefore I have a bullish outlook over the short term.

There is resistance above close to 1.1300, but it is above there that the situation is likely to get interesting, with the area around 1.1400 acting as the top of the range for the last two and a half years.

 EURUSD

There is nothing due today concerning either the EUR or the USD.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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