EUR/USD Forex Signal – Monday, May 22

Last Thursday’s signals were not triggered as there was no bullish price action at 1.1146.

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken between 8am and 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 1.1146 or 1.1065.

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 Trade 1

Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1250.

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.

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.

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 price continued to rise until the close of the week, being at the heart of the Forex market with the EUR the strongest and the USD the weakest of all the currencies. It looks as if there will be a continuing rise this week, although the area above 1.1250 may slow the advance, with plenty of long-term resistance levels above that which would be prone to slow the advance down. Today’s London session looks a little more likely to produce an initial downwards movement before the price may rise again.