(MENAFN- Daily Forex) Despite relative strength in the Euro on rumours of a good tariff deal with the USA, the US Dollar is continuing to strengthen, driving the price lower with a clear short-term bearish trend.

My previous EUR/USD signal on 24^th June gave a profitable long trade from the doji candlestick reversal at the support level of 1586's EUR/USD Signals

Risk 0.75%.

Trades must be taken before 5pm London time today only

Short Trade Ideas

• Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1731, $1.1765, or $1.1787.

• 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 Ideas

• Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1667, $1.1630, or $1.1586.

• 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.

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 a little more than two weeks ago, I thought that the EUR/USD currency pair was looking more bullish, with the price close to its multi-year high price, but there was also a chance of a bearish triple top. Fortunately, taking my bullish approach and looking for a long trade from a clear rejection of a support level was profitable.

The technical picture is quite different now, with the price descending from a multi-month high above $1.1800 which was made some days ago. The descent is orderly, with a clear pattern of both lower lows and lower highs. I have added a linear regression analysis indicator to the price chart below to give you an idea of the extent and shape of the bearish price channel, although I cannot say the channel is particularly symmetrical.

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We may be about to see this bearish pattern change, with a potential higher low having printed a few hours ago at $1.1700. The first test of this will be whether the price is now able to continue rising to get established above the recent high at $1.1731 which is also a clear resistance level. That will be a bullish sign if it sets up.

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On the bearish side, if $11731 holds and the price soon gets established below $1.1700, that will probably be a good short trade signal.

I do not know whether to prefer a long or short set-up, as there is a long-term bullish trend here which tends to be reliable, but the US Dollar has definitely regained some ground in recent days as markets focus on President Trump's tariff demands.-p

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There is nothing of high importance due today regarding the Euro. Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.

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