EUR/USD Forex Signal - 8 May 2019

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Yesterday’s signals were not triggered, as the price action at 1.1178 was insufficiently bullish.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1214 or 1.1223.
  • Place 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 Trade

  • Go long immediately upon the next touch of 1.1030.
  • Place 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.

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 I would take a bearish bias if there were a strong bearish reversal at 1.1223 should that price be reached later today.

I saw the market environment as very mixed and random.

These were not bad calls, they were not profitable, but they were enough to keep out of trouble.

The market remains in risk-off mode, and as the Euro is seen as a partial safe haven currency, it is a little strong. The only pivotal point nearby is the zone above from 1.1214 to 1.1223 – if there is a bearish rejection here which looks solid, I would take a bearish bias, but if the price trades above 1.1223 for a couple of hours later, I would take a bullish bias.

Short trades are generally preferred, as this pair is in a long-term bearish trend.

eurusd

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.