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EUR/USD Forex Signal- August 12, 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 were not triggered as the price never reached either 1.3325 or 1.3442.

Today’s EUR/USD Signals

Risk 0.75% equity.

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

Long Trade

Long entry following bullish price action on the H1 time frame after the first touch of 1.3325.

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

Adjust the stop loss to break even when the price reaches 1.3440.

Remove 75% of the position as profit at 1.3440 and leave the remainder of the position to run.

Short Trade

Short entry following bearish price action on the H1 time frame after the first touch of 1.3442.

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

Adjust the stop loss to break even when the price reaches 1.3325.

Remove 50% of the position as profit at 1.3325 and leave the remainder of the position to run.

EUR/USD Analysis

As expected, yesterday was an extremely quiet day. We printed a bearish inside bar on the daily chart and overnight the low of this was broken. Although the ranges we are looking at here are very low, working with the price action that we have suggests that we are now going to fall down to 1.3325 first before we might rise to 1.3440 or thereabouts.

Having said that, in this low-volatility environment, the EUR-related high impact news due during this morning’s London session is likely to move the price one way or the other, so if the news is EUR-positive, this should push the price up. It looks as if bad news will push the price down to 1.3325 more easily than good news might push the price up to resistance.

EURUSD 81214

There are no high-impact data releases due today concerning the USD. Regarding the EUR, there will be a release of the German ZEW Economic Sentiment at 10am London time. It will probably be a fairly quiet day today for this pair.

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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