EUR/USD Forex Signal – 21 May 2018

Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 1.1800.

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade

— Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1786.

— Put 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 1.1700 or 1.1650.

— Put 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

I wrote last Thursday that despite the long-term bearish trend, we were quite likely to not see any significant further move down that day, as the price had reached and seemingly bottomed out at a key cluster of support levels close to 1.1800. This forecast was correct, with the price just going sideways over Thursday. However, Friday saw a bearish break of the former support at 1.1786 which now seems to have become new resistance, and the price has continued to fall bearishly, although it seems to be getting some support around the key psychological level of 1.1750. The U.S. Dollar is strong while the Euro is weak, so I take a strongly bearish bias on this pair today, although action may be slow as it is a Monday without any major news items scheduled.

There is nothing due today concerning either the EUR or the USD.

This article provided by NewsEdge.