EUR/USD forecast today: Consolidation is below 1.0545

The US dollar is looking to take back the land.

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My previous recommendations on June 9th to trade EURUSD produced an excellent and well profitable short trade from rejecting the downtrend line near $1.0800.

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

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

Selling Trading Ideas

  • Take a short trade after the price action reverses downward on the H1 time frame right on the next touch at $1.0545 or $1.0600.
  • Set your stop loss at 1 pip above the local swing high.
  • Move the stop loss order to break even once the trade has made a profit of 20 pips.
  • Take 50% of the position as profit when the price makes a profit of 50 pips and let the rest of the position work.

Buy trading ideas

  • Take a long trade right after the price action reverses to the upside on the H1 time frame on the next touch of $1.0457 or $1.0426.
  • Set your stop loss at 1 pip below the local swing low.
  • Move the stop loss order to break even once the trade has made a profit of 20 pips.
  • Move 50% of the position as profit when the price makes a profit of 20 pips and let the rest of the position work.

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 a sunken candle with a higher close. You can exploit these levels or areas by watching the price action that occurs at the selected levels.

EUR/USD trading analysis

I wrote on the 9th of June that the price was consolidating inside a tight triangle pattern. It should be noted that the first breakout after the ECB release will not necessarily be the decisive breakout, and the long-term trend is still to the downside.

This was a good expectation as we got a crucial downside breakdown of the narrow triangle pattern after the ECB release.

The technical picture is now quite balanced, with two support and two resistance levels equally spaced on either side of the current price.

Price action is slightly downward, and we see the US dollar advancing, but this could easily reverse with the start of the London session. If the dollar’s strength continues, it is likely that we will see the price continue to trade to the downside until it reaches $1.0457.

I think the best approach to trading this currency pair today is to seek a relatively early reversal in the London or New York session from $1.0457 or $1.0545, and then watch the trade closely on a shorter time frame.

Chart generated by TradingView

There is nothing to be expected today regarding the Euro or the US Dollar.

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