EUR/USD Forex Signal For May 23, 2016

EUR/USD Signal Update

Last Thursday’s signals expired without being triggered.

Today’s EUR/USD Signals

Risk 0.75%

Trades must be taken from 8am to 5pm London time today only.

Long Trades

Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1173 or 1.1068.

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.

Short Trades

Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1234, 1.1258 or 1.1288.

Put the stop loss 1 pip above 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

EUR/USD Analysis

This pair has been falling fairly strongly for almost three weeks now without any really meaningful pause. There is a long-term bearish trend line above that is not far away. We also have a triple tapped short-term bearish trend line.

It is more or less in the middle of its range over the past year or so, therefore there is no real true long-term trend.

The best scenario would be for the price to keep trying to rise, but finally failing convincingly at a confluence of the trend lines and perhaps also the key psychological level of 1.1250. This could provide enough bearish momentum to really send the price down for another leg.

Alternatively, a sustained break up above 1.1258 would be a bullish sign.