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EUR/USD Signal- April 23, 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 as the price never reached either 1.3751 or 1.3861.

Today’s EUR/USD Signals

Risk 0.75%
Entry must be made before 5pm London time today.

Long Trade 1

Go long following confirming bullish price action upon the first touch of 1.3751.
Place a stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 1.3785.
Take off 50% of the position as profit at 1.3795 and the remainder of the position at 1.3840.

Short Trade 1

Go short following confirming bearish price action upon the first touch of 1.3861.
Place a stop loss 1 pip above the local swing high.
Move the stop loss to break even at 1.3831 and take 40% of the position as profit.
Exit the remainder of the position at 1.3751.

EUR/USD Analysis

Very little of interest happened yesterday and there has not been any substantial chance from yesterday’s analysis. There was not a lot of movement and the picture is still mixed, although we had a small move upwards which seems in danger of being wiped out this morning as the London session opens.

We should get some more volatility today. Long-term, a bullish bias makes sense, but we still have a bearish gap above us at 1.3861 that has acted as flipped resistance, and could therefore provide a good opportunity for a short trade. Below us there are support levels and a good long-term bullish trend line that is now close to the level at 1.3751.

Everything today should be confirmed by price action on the H1 chart before any decisions are taken.
EURUSD Signal

At 8:30am London time there is German Flash Manufacturing PMI data that may affect the EUR. Later at 3pm London time there will be a release of New Homes Sales data that may affect the USD. As we have some news and the pair has been quiet recently, we should expect some more volatility today.

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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