EUR/USD Forex Signal - 6 May 2019

Adam Lemon

Last Thursday’s signals were not triggered, as there was no bullish price action at 1.1190.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1227.

  • 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

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of the broken trend line shown in the price chart below which is currently placed at about 1.1125.

  • 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 last Thursday the short-term bearish price action suggested the impulse move is bearish, so a move down over the day would not be a surprise. I thought that the support at 1.1190 was likely to be the day’s pivotal point. This was a good call as the price fell by about another 40 pips after the level at 1.1190 broke down.

The Forex market is dominated now by the prospect of a trade war between the U.S. and China and that has strengthened the Yen and U.S. Dollar while hitting risk assets. Interestingly, the Euro is holding up relatively well so far against this move but is in a long-term bearish trend. The short-term price action also suggests a move down today, and there is room for the price to fall.

The action will probably be messy, and this pair will probably not be great to trade today, but I think we are more likely than not to see a down day today.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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