EUR/USD Forex Signal – 02 July 2018

Last Thursday’s signals were not triggered, as there was insufficiently bearish price action at 1.1596.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be taken between 8am and 5pmLondon time today, during the next 24-hour period.

Short Trades

— Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1666 or 1.1732.

— 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.

— 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

— Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1613 or 1.1596.

— 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.

— 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

For the past week, the situation here has moved from downwards trend movement to wide-ranging neutral swings. There have been periods where the Euro has acted as the strongest major currency in the market. The area around 1.1600 looks to be very pivotal and bears will want to see the price break below that quite soon to have confidence in remaining bearish. The short-term price action does look bearish and suggests that the price is likely to now move down towards the 1.1600 area. Long trades are riskier though, as there is still a long-term bearish trend. I have no directional bias on this pair today.

There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pmLondon time.

This article provided by NewsEdge.