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EUR/USD Forex Signal - 12 November 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

There is no outstanding signal.

Today’s EUR/USD Signals

  • Risk 0.75%

  • Trades must be made before 5pm London time.

 

Short Trade 1

  • Short entry following bearish price action on the H1 time frame immediately following the next touch of 1.2500.

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

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

Short Trade 2

  • Short entry following bearish price action on the H1 time frame immediately following the next touch of 1.2539.

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

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

Short Trade 3

  • Short entry following bearish price action on the H1 time frame immediately following the next touch of 1.2565.

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

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

Long Trade 1

  • Long entry following bullish price action on the 1H1 time frame H1H1H1 time frame immediately following the next touch of 1.2400.

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

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

EUR/USD Analysis

I had expected yesterday to be a fairly quiet day, which it was. However I thought a drift down would be more probably than not, but instead we are rising to approach the resistance at 1.2500 again.

This pair’s recent action has become more suitable to the kind of “levels” trading that these free daily signals are based upon. Below we have nice flipped support confluent with a round number at 1.2400, and above we have the same at 1.2500. I am wary of 1.2500 as it was hit so recently, so I suspect that the levels above that offer more high-probability short trades today, especially 1.2565 if we hit it today as it is at the very edge of the probable volatility range in the absence of major news announcements. There is also a resistant level at 1.2539.

My colleague Christopher Lewis agrees with my bearish bias and sees this pair eventually going down to 1.2050.

EURUSD 111214

There are no high-impact news releases scheduled today that are likely to affect either the EUR or the USD. The U.S.A. returns after yesterday’s public holiday so volatility will probably pick up.

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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