EUR/USD Forex Signal - 23 May 2019

Adam Lemon

EURUSD: Threatening a bearish break below 1.1140

Yesterday’s signals were not triggered, but the high of the day was just a pip below the resistance level I had identified at 1.1181.

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.

EUR/USD Analysis

I wrote yesterday that the only reason for bears to be cautious was that we still had not broken below the recent swing low at about 1.1140. I was ready to take a bearish bias later if the price could trade below that level for a couple of hours.

The price never did trade below 1.1140, instead retracing to just a pip or so short of the resistance level at 1.1181 which holds again, forming a double top, and pushing the price down to an area where it now threatens to break below the low at about 1.1140.

Again, I would be ready to take a bearish bias if the price can trade below 1.1140 for a couple of hours consecutively today.EURUSDThere is nothing important due today concerning the USD. Regarding the EUR, there will be a release of French Flash Services PMI at 8:15am London time, followed by German Flash Manufacturing and Services PMI at 8:30.

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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