EUR/USD Forex Signal: Firmly Bullish Above 1.0921 - 20 May 2020

Adam Lemon

EUR/USD: Euro one of the main gainers from USD weakness

Yesterday’s signals produced a short trade from the bearish reversal at 1.0971 which is currently in a little floating profit. It is probably wise to exit from the remainder of this trade as soon as possible due to the bullish situation.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0971 or 1.1056.

  • Put 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.

  • Remove 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 Ideas

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0921 or 1.0887.

  • Put 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.

  • Remove 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 we seemed to be set for more bullish price movement as the price was now trading firmly above the new higher support level at 1.0923. I was ready to take a long trade from a bullish bounce following a retracement to 1.0923, or a short trade from a strong bearish reversal at 1.1056.

This was an OK call as although the price has gone sideways over the past 24 hours, it is being held quite accurate by the nearest support and resistance levels, although the support has required adjustment down to 1.0921.

This consolidation over the past day is actually bullish, and the Euro is one of the major beneficiaries of the weakness that the market is seeing in the U.S. dollar this week.

As long as the price remains above 1.0921 the technical picture will remain firmly bullish, and even above 1.0887 it would be more bullish than bearish.

My approach today is to take a bullish bias and look for long trades from bounces at 1.0921 or 1.0887. If there is a strong upwards movement, it may be possible to make some short pips later from a bearish reversal at 1.1056 but be very cautious in taking any short trades.EURUSDThere is nothing of high importance due today concerning either the EUR or the USD.

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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