EUR/USD Forex Signal - 15 May 2018

Yesterday’s signals were not triggered, as none of the key levels were reached during the specified time.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken between 8am and 5pm London time today only.

Short Trade

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1937.

  • Place 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.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Long Trades

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

  • Place 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.

  • Remove 50% of the position as profit when the price reaches 25 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 the flow was certainly bullish, and that the Euro was likely to remain relatively strong today despite the long-term bearish trend. This was true until later in the New York session when the price began to fall relatively sharply. During the Asian session, the price fell further and printed a new likely resistance level at 1.1937, which was the weekly opening price. The action now looks bearish, in line with the long-term trend, so I take a bearish bias today. The Dollar is advancing most strongly against the Euro and the Japanese Yen. The Euro weakness has been slightly reinforced by some poor German Preliminary GDP data.EURUSD

There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.

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.