EUR/USD Forex Signal – 14 May 2018
Last Thursday’s signals were not triggered, as there was no bearish price action at 1.1898 or 1.1918.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2060.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1932, 1.1897 or 1.1875.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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Take off 50% of the position as profit when the price reaches 25 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 about how the situation was becoming less clear, and that a move up by the price was becoming more likely. We have now seen such an upwards push, with at least a temporary end to U.S. Dollar strength. The Euro is relatively strong, and the higher daily closes and break above the bearish trend line are significant. Having said that, the long-term trend is mixed, so it is not possible to place a great deal of confidence in the bullish move continuing, although there are no key resistance levels until 1.2060 so the line of least resistance does suggest a continuing rise. The flow is certainly bullish, and the Euro is likely to remain relatively strong today.
There is nothing due today concerning either the EUR or the USD.
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