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EUR/USD Signal- April 7, 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 as the price did not reach either 1.3715 or 1.3878 that day.

Today’s EUR/USD Signals

Risk 0.50%

Entries must be made between 8am and 5pm London time only.

Long Trade 1

Buy if confirmed by H1 price action such as a large pin bar at the next touch of the major bearish trend line currently at around 1.3688.

Place a stop loss 1 pip below the local swing low.

Adjust the stop loss to break even when the price reaches 1.3690.

Take off 50% of the position as profit at 1.3690 and leave the remainder to run.

Long Trade 2

Buy if confirmed by H1 price action at 1.3650.

Place a stop loss 1 pip below the local swing low.

Adjust the stop loss to break even when the price reaches 1.3750.

Take off 50% of the position as profit at 1.3750 and leave the remainder to run to 1.3795.

EUR/USD Analysis

It has become clear that this pair is in a fairly strong but choppy down trend since it failed to reach 1.4000 some days ago. Since then the moves down have been more significant than the moves up. After Friday’s NFP data, the price logically rose a few pips to reach about 1.3730, but was unable to move higher to logical resistance above that, falling instead, which is a bearish sign. Although the price did reach well below 1.3700, the support level at 1.3695 can be seen to be more or less holding.

As it is early on Monday, it would be pretty risky to go long from here; however there is a major bullish trend line just below here which has held since last summer, although it was touched on Friday. Today it might well hold as support with the confluence of the major bullish trend line which has held since last summer and the GMT daily S1 pivot point being so close by. I also look to go long at a further move down to 1.3650 if it is quickly confirmed by bullish price action at that level.

EURUSD Signal

There is no high-impact news due today concerning either the EUR or the USD. It is likely to be a very quiet day.

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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