EUR/USD Forex Signal - 21 May 2019

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Still bearish below resistance at 1.1181

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

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be taken between 8am and 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 1.1181.

  • 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 following 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 noted yesterday that the price had printed new lower resistance at 1.1181 and was heading towards multi-month lows and making new short-term low prices during the Asian session.

I saw the Euro as relatively weak, and all technical factors pointed towards a bearish day, so I took a bearish bias on this currency pair below 1.1181. This was a good call even though the price has not changed much from its level of a day ago, as the action has been bearish overall.

There is every reason to remain bearish here, everything I mentioned before applies again today and I take a bearish bias here.

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.