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EUR/USD Signal- June 5, 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 Tuesday’s signals expired without being triggered as the price never hit either 1.3555 or 1.3688.

Today’s EUR/USD Signals

Risk 0.75%

Entries must be made before 5pm London time today.

Long Trade 1

Go long after bullish price action on the H1 time frame following a 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 1.3585.

Remove 50% of the position as profit at 1.3585 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 ride.

EUR/USD Analysis

The last six days have seen this pair go nowhere; it has been ranging in a narrow range of about 65 pips. The major reason for this is that there were important economic data releases approaching which the market was waiting for, and these releases begin today and end tomorrow with the U.S. Non-Farm Payrolls data.

Therefore there is really nothing new to say about this pair at all. It is usually one of the most boring, ranging pairs to trade and new traders are well advised to try to broaden their repertoire of pairs to trade away from this.

The key technical levels I was talking about last week have not yet been touched and should be good for trades as so much time has built up during this ranging period. There is 1.3655 below and 1.3688 above.

Bias is broadly bearish.

EURUSD Signal 6514

At 12:45pm London time the ECB will declare the EUR’s minimum bid rate followed by a press conference at 1:30pm. Also at 1:30pm there will be the release of U.S. Unemployment Claims data. There is likely to be some volatility in this pair after Noon London time.

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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