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EUR/USD Forex Signal - 5 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 were triggered very shortly after London opened, with a pin candle rejecting the resistance at 1.1505 being good for a move of about 20 pips.

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 1.1450 or 1.1394.

  • 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 1.1505, 1.1600 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

We seem to be in an area of a big struggle between buyers and sellers. The resistance at 1.1505 keeps stubbornly holding, but it seems there are major market participants who were yesterday really trying to get the price bid up past that level. As New York opened, it really felt as if the price was going to rise strongly. However the resistance at 1.1505 did hold in the end, and we are currently trading in a very flat fashion below that level.

I think there is more potential on the bullish than bearish side with the best possible set-up probably being a long trade off 1.1450.

EURUSD

 There are no high-impact events due today concerning the EUR. It is a public holiday in France and Germany. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.

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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