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EUR/USD Signal- Feb. 17, 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

Last Thursday’s signals were not triggered and expired.

Today’s EUR/USD Signals

Risk 0.50%.

Entry should be made before 5pm London time today only.

Long Trade 1

Enter long with a limit buy order at the first touch of 1.3551.

Stop loss at 25 pips.

Move the stop loss to break even when the trade is 25 pips in profit and let it run. Take 75% of the position as profit at 1.3620.

Short Trade 1

Enter short with a stop sell order at a next bar break of an hourly pin or engulfing bar after a first touch and rejection of 1.3738. The trade is invalidated once an hourly bar closes above this level.

Stop loss at the local swing high.

Move the stop loss to break even when the trade is 25 pips in profit and let it run. Take 50% of the position as profit at 1.3655.

EUR/USD Analysis

The end of last week saw a bullish move up with a breakout from the bearish channel that we had been established in for some time. We are also within a longer-term uptrend.

The daily candles were however quite weak on the upside, which suggests that we are not going to have much further to move up before we will pull back down some way.

A likely candidate as a good resistance level is 1.3738. This level was more or less the January high and a sharp peak. It is also very confluent with today’s R2 GMT daily pivot point.

EURUSD Signal 21714

I agree with Christopher Lewis’s assessment that this pair simply has no real clear directional impetus at the moment.

There is no important news due today for the EUR or the USD. As it is also a public holiday in the USA, it is likely to be a very quiet trading day unless there is dramatic and unexpected news.

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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