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EUR/USD Signal- May 8, 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 expired without being triggered.

Today’s EUR/USD Signals

Risk 0.75%

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

Long Trade 1

Go long following confirming bullish price action on the H1 chart following the first touch of 1.3814.

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

Move the stop loss to break even when the price reaches 1.3870.

Remove 50% of the position as profit at 1.3870 and leave the remainder of the position to ride.

Long Trade 2

Go long following confirming bullish price action on the H1 chart following the first touch of 1.3750.

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

Move the stop loss to break even when the price reaches 1.3870.

Remove 50% of the position as profit at 1.3870 and leave the remainder of the position to ride.

Short Trade 1

Go short following confirming bearish price action on the H1 chart following the first touch of 1.3955.

Place the stop loss at 1.3987.

Move the stop loss to break even when the price reaches 1.3908.

Remove 50% of the position as profit at 1.3908 and leave the remainder of the position to run.

EUR/USD Analysis

Following the bounce off the bullish trend line one week ago, the upwards trend has continued. Friday’s NFP drove the price down to previous resistance at 1.3814 which became support and the price has not returned there since.

We have just broken through some more recent highs as we reached 1.3950 the day before yesterday. At the time of writing we may be creating another flipped resistance to support level at 1.3904.

The signs are bullish and the upwards trend is continuing. However we have not yet managed to make a new high close above 1.3928 which could be a signal for a lot of trend following hedge funds to begin or add to longs on this pair, which could give the price a further boost if it happens. Importantly, the strong resistance zone from 1.3955 to 1.3975 or so is still intact and despite the uptrend this zone could produce a good short opportunity, as well as longs at the aforementioned support levels.

We have big news today especially on the EUR side so I am not looking for any touch trades as the price movements could be very volatile.

EURUSD Signal 5814

There is very high-impact news due today concerning both the EUR and the USD. At 12:45pm London time ECB will release the EUR minimum bid rate, followed by the ECB press conference at 1:30pm. Also at 1:30pm there will be the release of USD Unemployment Claims data followed by the Chair of the Federal Reserve speaking at 2:30pm. So it I likely to be a quiet morning followed by plenty of volatility from about 12:30pm.

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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