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EUR/USD Forex Signal - 21 December 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 expired without being triggered as the price did not quite reach 1.0800.

 

Today’s EUR/USD Signals

Risk 0.75%

Trades must be entered only before 5pm London time today.

 

Long Trade 1

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.0810 and 1.0790.

* 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.

* Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

 

Short Trade 1

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0900.

* 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.

* Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

 

Short Trade 1

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0950.

* 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.

* Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

 

EUR/USD Analysis

The anticipation and actual effect of last week’s U.S. rate hike had the effect of moving price down from 1.1050, with a fresh push down off 1.0950. This brought the price down to within just a pip or two away from the key support zone at around 1.0800, and the price has subsequently moved up from there and appears to be set for a continued slow rise as at the time of writing. We can expect resistance at 1.0900 and also at 1.0950 so it looks like the price is going to bump into the first level fairly soon, where it may well reverse.

In the unlikely event that the price falls sharply, we just might reach 1.0810 which should be supportive especially during the first half of the London session.

This pair has been behaving quite technically so can be expected to respect levels today, especially in the absence of any high-impact news.

EURUSD

There is nothing due 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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