EUR/USD Forex Signal – 05 July 2018

Yesterday’s signals were not triggered, as there was no bullish price action at 1.1645.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be entered before 5pm London time today, over the next 24-hour period only.

Short Trade

— Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1732.

— 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.

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

Long Trades

— Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1647 or 1.1596.

— 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.

— Remove 50% of the position as profit when the price reaches 25 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.

EUR/USD Analysis

I wrote yesterday that trading was likely to be very light, and that the price would remain above the 1.1645 area. I’m short-term bullish within a long-term bearish trend. In fact, the price dipped a few pips below 1.1645 but has now reached 1.1700 as the market comes back to life after yesterday’s very thin trading day. There is a long-term bearish trend, but the short and medium-term momentum is definitely with the bulls although the round number at 1.1700 might halt the advance for a while. Note the supportive trend line acting as a base in the price chart below.

I have a bullish bias today until at least the ADP data release – that and the FOMC minutes could have a strong and unpredictable effect upon the price.

There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by the ISM Non-Manufacturing PMI at 3pm. There will be a release of Crude Oil Inventories data at 4pm, and finally the FOMC Meeting Minutes at 7pm.

This article provided by NewsEdge.