My previous EUR/USD signal on 28th April gave a profitable long trade from the bullish bounce off the support level at $1.1682.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1745, $1.1774, or $1.1791.
Put the stop loss 1 pip above the local swing high.
Adjust 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 run.
Long Trade Ideas
Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1725, $1.1716, or $1.1692.
Put the stop loss 1 pip below the local swing low.
Adjust 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 run.
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.
In my previous EUR/USD analysis on Tuesday last week, I thought that the EUR/USD currency pair was likely to range between the nearest support and resistance levels as there is not much going on in the market.
I mentioned a conservative long trade from a bullish bounce at $1.1682, and this was a good call as it did set up and give a profitable trade.
There is little change to the technical picture. The price continues to range between approximately $1.1650 and $1.1800 and playing the range will likely remain the way to go if you want to trade this currency pair.
One technical feature to watch out for which is beginning to appear is a potential bearish head and shoulders, with the top of the shoulder which would need to complete being in the $1.1750 area. If the price fails to get established above this level and eventually makes a turn lower, we will have a significant bearish chart pattern.
Working against a potential bearish setup is the more risk-on market environment which has been triggered by strong tech earnings and President Trump’s suspension of the American attempt to open the Strait of Hormuz by force. Trump is again dangling the prospect of a peace deal over the near term, however unlikely that might be in reality, but it helps the mood which tends to weaken the USD. This means bulls are likely to have the upper hand today but will face big tests at $1.1750 or $1.1800.
I will be enthusiastic about a long trade from $1.1672 or a short trade from either the $1.1750 or $1.1800 areas, but I will be conservative about taking profit.
(image06052026eurusd)
https://www.tradingview.com/chart?symbol=FX%3AEURUSD
There is nothing of high importance scheduled today concerning either the Euro or the US Dollar.
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