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EUR/USD Forex Signal- June 9, 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 0.75%

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

Long Trade 1

• Long entry after bullish price action on the H1 time frame following a first touch of 1.3555.

• Put a stop loss 1 pip below the local swing low.

• Adjust the stop loss to break even when the price reaches 1.3650.

• Take off 75% of the position as profit at 1.3650 and leave the remainder of the position to run.

Short Trade 1

• Short entry after bearish price action on the H1 time frame following a first touch of 1.3688.

• Put a stop loss 1 pip above the local swing high.

• Adjust the stop loss to break even when the price reaches 1.3655.

• Take off 50% of the position as profit at 1.3655 and leave the remainder of the position to ride.

EUR/USD Analysis

Following six days of very quiet, sideways action, this pair came alive last Thursday following a news release. The price plummeted down below the support at 1.3555 eventually reaching a low just above 1.3500, but quickly rebounded to rise with some sharpness. The NFP on Friday caused more movement but it was ultimately sideways movement, and the price stabilized at around 1.3650.

As the price only spent about an hour or so below 1.3555 we can still see this support as valid, but it would be best to treat it as a zone rather than a level, from 1.3500 to 1.3555.

Bias is broadly bearish, but the price action is suggesting that we may have bottomed out, at least for a while. The rate of fall in the EUR price has been slowing over recent weeks and days. It would seem the most likely short-term move is upwards.

EUR/USD Signal

There are no high-impact news events scheduled for today concerning either the EUR or the USD. It is likely to be a very quiet day for this pair, particularly as it is also a public holiday in Germany, France and Switzerland.

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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