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EUR/USD Forex Signal- July 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

Yesterday’s signals expired without being triggered.

Today’s EUR/USD Signals

Risk 0.75%

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

Short Trade 1

Go short following bearish price action on the H1 time frame after the first touch of 1.3748.

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

Move the stop loss to break even when the price reaches 1.3705.

Remove 75% of the position as profit at 1.3705 and leave the remainder of the position to ride.

Long Trade 1

Go long following bullish price action on the H1 time frame after the first touch of the bullish trend line currently sitting at around 1.3643.

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

Move the stop loss to break even when the price reaches 1.3684.

Remove 50% of the position as profit at 1.3684 and leave the remainder of the position to ride.

EUR/USD Analysis

Yesterday saw a slight falling off, or at least a reluctance to rise any further. We were unable to break up beyond the resistance zone just under 1.3700. It was a very quiet day overall and this is quite likely to continue as tomorrow we have a release of non-farm payroll data from the USA. In advance of this, USD pairs tend to be fairly dormant. In spite of that, we have had a rise this week.

The wider picture shows we are in another triangle, with an ascending trend line below us at around 1.3643, and an old descending trend line above us currently sitting at above 1.3710. We will probably not get any sustained breaks of either trend line until after the news release tomorrow.

In the meantime, I will be looking for longs confirmed by price action at the bullish trend line, but I will not be looking for a short until we reach 1.3748. The resistance around 1.3700 is uncertain.

EURUSD 7214

There are no high-impact data releases scheduled for today that can be expected to directly affect the EUR. Later at 1:15pm London time there will be a release of the ADP Non-Farm Employment Change, 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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