EUR/USD Forex Signal - 14 May 2018

Last Thursday’s signals were not triggered, as there was no bearish price action at 1.1898 or 1.1918.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2060.

  • Put the stop loss 1 pip above the local swing high.

  • Move 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 ride.

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1932, 1.1897 or 1.1875.

  • Put the stop loss 1 pip above the local swing high.

  • Move 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 25 pips in profit and leave the remainder of the position to ride.

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 last Thursday about how the situation was becoming less clear, and that a move up by the price was becoming more likely. We have now seen such an upwards push, with at least a temporary end to U.S. Dollar strength. The Euro is relatively strong, and the higher daily closes and break above the bearish trend line are significant. Having said that, the long-term trend is mixed, so it is not possible to place a great deal of confidence in the bullish move continuing, although there are no key resistance levels until 1.2060 so the line of least resistance does suggest a continuing rise. The flow is certainly bullish, and the Euro is likely to remain relatively strong today.EURUSD

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

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.