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EUR/USD Forex Signal - 26 August 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

Yesterday’s signals produced a losing trade off the inside bar bullish break just above the 1.1500 level.

Today’s EUR/USD Signals

Risk 0.75%

Trades may only be made before 5pm London time today.

 

Long Trade 1

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1394.

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

  • Move the stop loss to break even once the trade is 30 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 run.

 

Short Trade 1

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.1559 and 1.1575.

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

  • Move 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 run

EUR/USD Analysis

This pair fell back fairly strongly yesterday before turning around late in the London session with a doji candle on the hourly chart. Reversals in this pair are often signified by doji candles at the extremes.

The later New York session then saw a sizeable rise up to 1.1559, but we then had another correction during the Asian session. At the time of writing, the Frankfurt open is suggesting another upwards wave is beginning, but the Frankfurt open can often be deceptive.

The Euro has been the strongest currency for a while and so long EUR/USD has been a good bet generally. Due to the recent huge moves it is tough to accurately gauge support and resistance levels that are likely to hold, but I see support right now at around 1.1400 and resistance above at around 1.1575.

EURUSD Signal

There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.

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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