EUR/USD Trading Recommendations: Sell Ideas and Buy Ideas

The Euro appears to be the strongest major currency today.

My previous recommendations were not triggered on June 6th for EURUSD trading as there was no price movement to the upside when the price first reached the identified support area at $1.0704.

Today’s recommendations for trading the EUR/USD currency pair

• The risk is 0.75%.
• Trades must be entered between 8am and 5pm London time today only.

Sell ​​trading ideas

• Take a sell trade after the price action reverses to the downside on the timeframe right at the next touch of $1.0796 or $1.0835 or $1.0848 or $1.0871.
• Set the stop loss one pip above the local swing high.
• Set your stop loss order to break even once the trade is 20 pips in profit.
• Take 50% of the position as profit when the price reaches 50 pips of profit and let the rest of the position run.

Buy trade ideas

• Take a long trade after the price action reverses to the upside on the timeframe right at the next touch of $1.0737 or $10724 or $10705.
• Set your stop loss 1 pip below the local swing low.
• Set your stop loss order to break even once the trade is 20 pips in profit.
• Take 50% of the position as profit when the price reaches 20 pips in profit and let the rest of the position run.

The best way to identify a classic “price action reversal” is to close an hourly candle, such as a pin bar, doji, outside candle or even just an engulfing candle with a higher close. You can exploit these levels or areas by observing the price action that occurs at the specified levels.

In my previous analysis of EURUSD trading, I said that the technical picture looked choppy between $1.0625 and $1.0800. I thought the best strategy would probably be to trade the reversals from any price extremes like $1.0626 and $1.0796.

This was good enough to keep out of trouble. I was right about the price lacking a lot of direction during the day.

The technical picture is now more bullish, having produced what looks like a cup to the upside and a handle pattern below, as shown in the price chart below, this has triggered the current bullish move to a new 3-week high .

The Euro is the strongest major currency while the US dollar is the weakest, so this currency pair is in focus. Another reason for this is that both central banks will meet over the coming days, with the Fed expected to pause increases, while the European Central Bank is expected to decide to raise rates by 0.25%.

Technically, the price rose steadily and is now testing the $1.0796 resistance level which is very attached to the $1.0800 reversal figure.

If the price stabilizes above this level after the London open, for example with two consecutive higher closings, that would indicate the possibility of another move to the upside, with the price potentially reaching $1.0835 very quickly.

However, a lot is likely to be determined by the US CPI (Inflation) data release due later, which is expected to drop strongly to 4.1%. If the data is much worse, we could see the price drop and ignore any technical considerations.

I think the best strategy today for most traders would be to wait for the US CPI data and then look to trade a reversal from a rally to a distant support or resistance level. If the release goes as expected and the price rises above $1.0800, then a short time frame monitored buy trade is likely to be the best option.

Graph generated by platform TradingView

Regarding the US dollar, there will be a CPI (inflation) data release at 1:30pm London time. There is nothing expected today regarding the EUR.

Are you ready to trade our daily forex signals? Below is a list of the best forex brokers to consider.