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EUR/USD Signal- Jan. 14, 2014

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

EUR/USD Signal Update

Yesterday’s signals were not triggered and expired.

Today’s EUR/USD Signal

Risk 0.50%.

Entry should be made between 8am and 5pm London time today only.

Short Trade 1

Enter short at the next bar break of an hourly pin or engulfing bar rejecting and closing below the resistance zone of 1.3715/27. If this zone is not touched and rejected by the same hourly bar, or if an hourly bar closes above 1.3727, the trade is immediately invalidated and should not be taken.

Stop loss 1 pip above the local swing high.

Move the stop loss to break even when the trade is 30 pips in profit and let the trade ride.

Long Trade 1

Enter long with a limit buy order at a touch of 1.3489.

Stop loss at 1.3444.

Move the stop to break even when the trade is 45 pips in profit and let it run.

EUR/USD Analysis

Yesterday’s big story was the strengthening of the JPY and the weakening of the GBP, although the GBP’s 9 month bullish trend line did hold. None of this affected EUR/USD much, and it had a quiet Monday, falling slightly. It is still above its long-term bullish trend line and the 200 EMA on the D1, H4 and H1 charts. The resistance zone starting at 1.3715 is quite confluent with today’s R2 daily pivot point.

EURUSD Signal 11414

There is no important news due today for the EUR. Concerning the USD, there are two news releases due at 1:30pm London time (Core Retail Sales / Retail Sales) so there is likely to be more movement during the New York session than the London session.

Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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