EUR/USD Forex Signal - 22 September 2014

EUR/USD Signal Update

Last Thursday’s signals were not triggered and expired.

Today’s EUR/USD Signals

Risk 0.75%

Entries should only be made from 8am to 5pm London time.

 

Long Trade

Long entry following bullish price action on the H1 time frame following a first touch of 1.2750.

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

Move the stop loss to break even when the trade is 50 pips in profit.

Remove 25% of the position as profit when the trade is 50 pips in profit, and leave the remainder of the position to ride.

 

Short Trade

Short entry following bearish price action on the H1 time frame following a first touch of 1.3000.

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

Move the stop loss to break even when the trade is 50 pips in profit.

Remove 25% of the position as profit when the trade is 50 pips in profit and leave the remainder of the position to ride.

EUR/USD Analysis

Last Thursday I wrote that although the pair still looks weak, it is not very interesting to trade as long as it remains stuck between 1.2750 (where there is major support from the big double bottom last year that started the major bullish move up to 1.4000), and last week’s high at around 1.3000. Nothing has happened to change my analysis.

We have been heading upwards since the market opened yesterday evening so it looks like we are not going to have any breaks of lows that might give opportunities for quick short trades. There is local resistance at the 1.2960 area so the price might turn bearish there.

EURUSD 92214

At 2pm London time the President of the ECB will testify before the European Parliament on monetary policy, which may affect the Euro. It is likely to be a quiet day before that time for this pair.

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.