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EUR/USD Forex Signal - 16 February 2015

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 were not triggered, as although the price did reach 1.1350 during that day’s London session, there was no bearish price action there.

Today’s EUR/USD Signals

Risk 0.75%

Trades may only be entered between 8am and 5pm London time.

Short Trade 1

Go short following some bearish price action on the H1 time frame immediately upon the first touch of 1.1532.

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

Adjust the stop loss to break even once the trade is 25 pips in profit.

Remove 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to run.

 

Long Trade 1

Go long following some bullish price action on the H1 time frame immediately upon the first touch of 1.1350.

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

Adjust the stop loss to break even once the trade is 25 pips in profit.

Remove 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to run.

EUR/USD Analysis

Towards the end of last week the market was waiting for bad news from the Euro zone that was expected to make the Euro drop and the price of this pair fall. Although there was no announcement of an agreement between Greece and the ECB, there was a strong rumour of a deal being cooked up behind the scenes, and this was actually enough to make this pair break upwards past resistance at 1.1350. Since then, we have also broken out above the bearish channel.

Although the picture is still very uncertain and future direction is likely to be strongly news-driven, this paints a more bullish picture, with 1.1350 now positioned to possibly act as support. There is a good flipped area above that should provide resistance at around 1.1532.

EURUSD 21615

There are no high-impact data releases scheduled for today concerning the USD. It is a public holiday in the USA. However it is an important day for the Eurozone as there are Euro group meetings all day today. There may be very high-impact news that could cause a strong movement and some volatility.

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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