EUR/USD Forex Signal Today 10/06: Bearish H&S (Chart)

(MENAFN- Daily Forex) My previous EUR/USD signal on 28th May was not triggered as there was no bullish price action when the support level at $1.1295 was first reached.

Today's EUR/USD Signals

Risk 0.75%.

Trades must be entered between 8am and 5pm London time today only Trade Idea

• Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1415, $1.1430, or $1.1454.
• 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 $1.1361, $1.1315, or $1.1296.
• 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.

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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/USD Analysis

In my previous EUR/USD analysis almost two weeks ago, I thought that the EUR/USD currency pair was likely to have the round number support at $1.1300 as the day's pivotal point. This was a good call but the short trade here targeting $1.1248 did not quite set up during the London session, although it did later.

Technically things have moved on quite a lot since then – the price advanced to get quite near to the long-term high area but seems to have peaked and printed shoulders both to the left and right of the peak. It is quite clear that we are seeing a bearish head and shoulders pattern start to complete, with a clear neckline at the support level of $1.1361. There is no other support level between the current price and this level, so it is likely to be today's pivotal point.

Much will depend upon the US Dollar Index, which is sitting heavy close to key support. If this support continues to hold, expect a strong breakdown once the price here gets below $1.1361.

Things are also complicated by the US CPI (inflation) data release due tomorrow. I suspect that this level at $1.1361, and also the resistance level at $1.1430 as the right shoulder will continue to hold today, so scalps rejecting these levels should be the best strategy for today with this currency pair.

EURUSD Chart by TradingView

There is nothing of high importance due today regarding either the Euro or the USD.

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