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EUR/USD Forex Signal - 7 April 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 1.0809 there was no bearish price action at that level.

Today’s EUR/USD Signals

Risk 0.75%

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

 

Long Trade 1

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0900.

  • Place 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.

  • Take off 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 2

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0798.

  • Place 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.

  • Take off 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 1

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone from 1.1025 to 1.1060. Pay attention to the trend lines shown in the chart below.

  • Place 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.

EUR/USD Analysis

The chart is very interesting today, as there is a huge amount of resistant confluence above 1.1000. We have the key psychological impact of the price being above 1.1000, plus several well-establish trend lines that have held very tightly and flipped, not to mention a key double top at 1.1050. For all these reasons, despite the recent bullishness and the printing of new support levels, it is hard not to see a return to that area above as providing a great opportunity to go short.

There is still good support below at the whole numbers, but any long from 1.0900 should be taken conservatively and cashed in quickly.

EURUSD 4715

There are no high-impact events scheduled today concerning either the EUR or 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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