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EUR/USD Forex Signal - 3 May 2016

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 short trade off the bearish pin candle rejecting the trend line at 1.1500.

Today’s EUR/USD Signals

Risk 0.75%

Trades must be taken from 8am until 5pm London time today only.

 

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of the minor trend line currently sitting at around 1.1430.

  • 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.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

 

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1559, 1.1575 or 1.1650.

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

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

EUR/USD Analysis

The bullishness continued, although there was no real opportunity for any technical long entries even down to the H1 time frame. The price just kept rising. The best opportunity in hindsight was the pullback to the small trend line just after London open.

In any case one of the trend lines has been invalidated by the rising price, as has the level at 1.1500 which initially looked as if it would provide a bearish reversal, but then failed to follow through.

There is resistance above but it is worthwhile to be careful taking any shorts in this environment.

EURUSD

There are no high-impact events due today concerning either the EUR or the USD.

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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