EUR/USD Forex Signal - 4 June 2019

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Yesterday’s signals produced a very profitable long trade entry from the bullish inside candlestick on the hourly chart which rejected the support level at 1.1161. It would probably be wise to exit this trade now.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be entered before 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 1.1277 or 1.1325.
  • 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 Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1225 or 1.1220.
  • Place the stop loss 1 pip below the local swing low.
  • 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 the dominant characteristic of markets since the end of last week had been strong risk-off sentiment which had strongly boosted safe havens and the Euro was a minor beneficiary of that. We seemed to have support in the area between about 1.1175 and 1.1160 and I thought that the lower edge of this was likely to be the day’s pivotal point. I was correct about this as 1.1161 turned out to be a very precise pivotal point.

There was a strong rise in safe haven assets again yesterday as well as a weak U.S Dollar, and the Euro benefited from those factors are rose quite strongly. The technical picture is now more bullish as although we have a long-term bearish trend, we just had a 30-day high close and a bullish break above former resistance at 1.1225 which was quite significant. I think the price now will probably consolidate around 1.1250 but may well then resume its advance – but probably not today.

eurusd

There is nothing important due today concerning the EUR. Regarding the USD, the Chair of the Federal Reserve will be giving a speech at 2:55pm London time.

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.