EUR/USD Forex Signal - 8 June 2017

08 June 2017 6:49:01 AM

 

Yesterday’s signals produced a profitable long trade following the doji candle rejecting the support level identified at 1.1205.

Today’s EUR/USD Signals

Risk 0.50%.

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 1.1205, 1.1188 or 1.1163.
  • 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 or 1.1366.
  • 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 a period of consolidation with a bullish bias should be the correct short-term outlook and this proved to be correct, with the price erasing closer support but the level at 1.1205 holding clearly and strengthening. The chart below shows a double bottom there.

The Euro is likely to be impacted strongly today by ECB forward guidance, and the British General Election result due later, while the Dollar may also be affected by political testimony in Washington D.C., so anything could happen. It is important to remember though that the Euro is in a long-term bullish trend, and that “accidents tend to happen along the line of least resistance”, suggesting that maintaining a bullish bias is correct.EURUSD

Concerning the EUR, the European Central Bank will release the Minimum Bid Rate at 12:45pm London time, followed by the usual press conference. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm.

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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