EUR/USD Forex Signal - 7 May 2019

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

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be entered before 5 pm 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 1.1223.
  • 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.
  • 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 Trade

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1178.
  • 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.
  • Remove 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.

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EUR/USD Analysis

I wrote yesterday that the short-term price action suggested a move down over the day, and there was room for the price to fall. I thought that the action would probably be messy,but also that we were more likely than not to see a down day. I was wrong as the price has continued to rise.

There is new support at 1.1178 but also key resistance close by at 1.1223. I think the level at 1.1223 is going to be the pivotal point for today. I would take a bearish bias if there is a strong bearish reversal there should that price be reached later today.

The market is very mixed at present, with currencies not rising or falling as groups but with a lot of independent movement instead, which creates a less certain trading environment for the time being.

EUR/USD Signals

There is nothing important 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.