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EUR/USD Forex Signal: Bounce from Key Support at $1.1063

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked with...

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My previous EUR/USD signal on 17th April gave a losing long trade from a bullish rejection of the support level identified at $1.1345.

EUR/USD Signal Today 14/05: Bounce from Key Support (Chart)

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be taken prior to 5pm London time today.

Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1241, $1.1272, or $1.1322.
  • 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.

Long Trade Idea

  • Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1063.
  • 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.

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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

In my previous EUR/USD analysis about one month ago, I thought that the EUR/USD currency pair was likely to see a breakout to new highs, although maybe not on the day. This was a good and accurate call although, as I said, it did not happen that same day.

We have seen this pair turn bearish over recent days as the US Dollar found a bid again. Monday saw the price bounce just barely above a very key support level at $1.1063. However, that bullish move seems to have run out of steam, and the hourly price chart below clearly show a bearish topping out at the round number of $1.1200, suggesting today’s short-term price movement is likely to be bearish.

There are no key support levels to watch for above $1.1063, so day traders should probably look for short trades. There might be support at about $1.1140 as this has recently been an inflection point.

If the price turns bullish and gets established above $1.1200, day traders will likely do better looking for long trades, although that might be tough as there are two resistance levels not far from there. Short trades below $1.1200 look a better bet.

There is nothing of high importance scheduled today concerning the Euro or the USD.

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Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

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