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EUR/USD Signal- June 2, 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 as the price did not reach either 1.3555 or 1.3688.

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 after bullish price action following the first touch of 1.3555.

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

Move the stop loss to break even when the price reaches 1.3587.

Remove 75% of the position as profit at 1.3587 and leave the remainder of the position to ride.

Short Trade 1

Go short after bearish price action on the H1 time frame following a first touch of 1.3688.

Place the stop loss 1 pip above the local swing high.

Move the stop loss to break even when the price reaches 1.3655.

Remove 50% of the position as profit at 1.3655 and leave the remainder of the position to run.

EUR/USD Analysis

We finally had a pull-back during the final two days of last week, with the price reaching a high of 1.3650 on Friday. The EUR was even stronger against the JPY.

Things look like they are going sideways at the moment and it might be that the price does not really go anywhere for a while. However it seems a little more likely that we will reach 1.3688 before falling down to 1.3555. Friday’s daily candle was quite healthily bullish and we did hit a 1.618 Fibonacci extension of an earlier bullish move which is a bullish sign.

I would look today for a short at 1.3688 and for a long at 1.3555, although it is quite likely we will not see much movement in this pair until later in the week.

EURUSD Signal 6214

Today will see the release of German Preliminary CPI data which may affect the EUR, although unfortunately the timing is difficult to predict. At 3pm London time there will be a release of U.S. ISM Manufacturing CPI data which may affect the USD.

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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