EUR/USD Forex Signal Today 05/02: Bullish Breakout (Chart)

(MENAFN- Daily Forex) My previous EUR/USD signal on 22nd January produced a profitable short trade from $1.0452.

Today's EUR/USD SignalsRisk 0.75%.Trades may only be entered before 5pm London time today.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Short Trade Idea

• Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0457, $1.0479, or $1.0542.

• Place 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.

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

Long Trade Ideas

• Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.0387, $1.0348, or $1.0322.

• Place the stop loss 1 pip below the local swing low.

• Move 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 ride.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money

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/USD Analysis

In my previous EUR/USD analysis two weeks ago, I wrote that the EUR/USD currency pair was looking more bullish, so I was happy with the idea of taking a long scalp from a bullish bounce from the support level at $1.0392. This did set up but not until the next day so maybe it was not a very useful call. However, the nearest resistance level at $1.0457 did hold and gave a profitable short trade.

The technical picture now is more bullish, with the price chart below showing an obvious bullish over and under / Quasimodo pattern rejecting the recent lows below $1.0250. A further bullish development has just happened: a very obvious bullish breakout beyond the former clear resistance level at $1.0387.

As there is no long-term trend in this currency pair, be guided by the shorter-term price action, which will remain bullish as long as the price remains above $1.0387, which it probably will. A retest and bullish bounce at that level could produce a good long trade entry signal, but it is not clear that the price will have far to run, so monitor profit-taking carefully.

The US Dollar is weak everywhere right now, and this could continue until tonight's Tokyo session, when the Dollar tends to strengthen.

There is nothing of high importance due today concerning the Euro. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change forecast, followed by ISM Services PMI data at 3pm.

EURUSD Chart by TradingView

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