The EUR/USD signal from June 10 hasn’t been activated yet.
Today’s EUR/USD Signal
Risk is set at 0.75%.
Trades should be done by 5 PM London time today.
Short Trade Ideas
- Consider entering a short after a reversal on the H1 timeframe, following a touch of $1.1569 or $1.1671.
- Set a stop loss just above the latest local swing high.
- Even if gaining 20 pips, it can still trigger the stop loss.
- When the price hits 20 pips in profit, take half of the position as profit before managing the rest.
Long Trade Ideas
- A long entry might be viable after a bullish price action reversal on the H1 timeframe, particularly after touching $1.1481 or $1.1408.
- Place a stop loss slightly below the recent local swing low.
- Similar to the short setup, a 20-pip gain could risk triggering the stop loss.
- Again, if it hits 20 pips of profit, take 50% as profit first.
To catch classic “price action inversions,” pay attention to hourly candle closures, like pin bars, dojis, or surrounding candles at those key levels.
EUR/USD Analysis
Looking back at a previous analysis, I had a hunch that if the US Dollar Index held its key support, we could see the EUR/USD potentially drop below $1.1361, given the bearish head-and-shoulders pattern. That didn’t happen; prices actually climbed to a monthly high instead.
Recently, the technical outlook has turned bullish, mainly due to a decline in the dollar reaching new long-term lows, but now we’re seeing a pullback that could set up another bearish head-and-shoulders pattern, particularly with a second shoulder forming around $1.1569 as a point of resistance.
This makes $1.1569 a crucial level. If the price firmly establishes above it, I would consider entering a new long trade without hesitation.
At present, the action shows a bearish trend, rejecting at $1.1569.
There are broader geopolitical tensions, like the situation in Iran, which could significantly sway this currency pair. If the US engages in military action regarding Iran’s nuclear ambitions, it might bolster the dollar, creating a risk-off sentiment.
Today, however, there isn’t much of note concerning the Euro or the USD.
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