EUR/USD Forex Signal – Monday, June 5

Last Thursday’s signals were not triggered as none of the key levels were reached during that session.

Today’s EUR/USD Signals

Risk 0.75%.

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

Long Trades

Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1250 or 1.1205.

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.

Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

Short Trade 1

Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1295.

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.

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.

EUR/USD Analysis

The Euro has the greatest long-term strength of all major currencies, and the break up above 1.1250 following Friday’s NFP data release is a significantly bullish development. Although the trend is irregular, it is certainly in evidence. Recent days have seen symmetrical upwards swings, so going long after the currency pullback completes seems to be the highest probability trade which might arise.

There is resistance above close to 1.1300, but it is above there that the situation is likely to get interesting, with the area around 1.1400 acting as the top of the range for the last two and a half years. A major bearish reversal up there, not now but looking to the future, could be the start of another downwards movement for hundreds of pips, potentially. Alternatively, a break up above the range could indicate bullish “blue sky” and a speedy upwards movement that might travel a long distance.