EUR/USD Forex Signal - 13 May 2019

Adam Lemon

Last Wednesday’s signals were not triggered, although the high of the day was only 1 pip below the resistance level identified at 1.1214.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be entered before 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 1.1277.

  • 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 Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1225 or 1.1213.

  • 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.

EUR/USD Analysis

I wrote last Wednesday that the pivotal point nearby was the zone above from 1.1214 to 1.1223 – if there was a bearish rejection here which looked solid, I would take a bearish bias, but if the price traded above 1.1223 for a couple of hours later, I would take a bullish bias.

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

This was a good call as the high of that day was made just below 1.1214, and the price has now broken above that zone and looks more bullish. There are no other key levels until 1.1277 so the line of least resistance is likely to be whichever side of that zone the price settles on. If 1.1225 holds then the price is likely to rise higher.

There is a long-term bearish trend, but the price really has to get established below 1.1213 before short trades become truly attractive.

I would be bearish if the price can trade below 1.1213 for a couple of hours on above-average volatility.EURUSDThere is nothing important due today concerning either the EUR or the USD.

About the Author
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.
Learn more from Adam in his free lessons at FX Academy

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