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EUR/USD Forex Signal - 21 October 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 expired without being triggered as the price never reached 1.1315.

Today’s EUR/USD Signals

Risk 0.75%

Trades must 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 1.1315 and/or the supportive trend line currently sitting at around the same price.

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

  • 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.

 

Long Trade 2

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1232 and/or the supportive trend line currently sitting at around 1.1235.

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

  • 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

I forecast yesterday that an upwards move was the more likely scenario for the day, and this was what happened, before the price hit local resistance at around 1.1380 and fell again. Although the range is not big, the line of least resistance is definitely bullish, and the support I identified at 1.1315 has held. The chart below shows that we now have a clear confluence of a horizontal level and supportive trend line at 1.1315, so a dip back down there is quite likely to produce another intraday upwards move. Whether the price can then clear 1.1380 which is becoming the beginning of a clearly resistant area is another matter. Relatively small profits are probably all that is on offer. Overall the Forex market is quiet and flat at the moment, and trading this pair long from support is probably one of the few intraday trades on offer at the moment.

There is another good level of supportive confluence below at 1.1235.

EURUSD

There are no high-impact releases due today concerning 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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