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EUR/USD Forex Signal - 18 May 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 the price did not reach 1.1450 during that day’s London session.

Today’s EUR/USD Signals

Risk 0.75%

Trades must be entered before 5pm London time today.

 

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.1450 and 1.1532.

  • 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.

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

 

Long Trade 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1277.

  • 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.

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

EUR/USD Analysis

The bullish trend and upwards momentum continue unabated, and the price continues to make higher lows. We have just reached a point where the price is very slightly above its level from 3 months ago, not to mention 1 month ago, both of which are key bullish signs.

However it would be foolish not to note that we have just hit a zone that begins at around 1.1450 which is very likely to be resistant at least for a while. My colleague Christopher Lewis also sees potential resistance here. Therefore it would not be surprising if we get a pullback from this point, especially if the price spikes up there early after the London and/or New York opens.

The nearest flipped resistance to support level at which to look for a new long trade lies below at 1.1277.

EURUSD 51815

There are no high-impact news releases scheduled today concerning either the USD or the EUR.

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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