EUR/USD Forex Signal - 16 September 2014

EUR/USD Signal Update

Yesterday’s signal was not triggered and expired.

Today’s EUR/USD Signals

  • Risk 0.75% of equity.

  • Entries must be prior to 5pm London time today.

Short Trade

  • Short entry following a strong lower high after a major high once 1.3000 is broken to the up side.

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

  • Remove 75% of the position when profit is double risk and leave the remainder to run.

EUR/USD Analysis

Yesterday was a quiet day as expect, which did not add much to the overall picture beyond another day’s low more or less holding. However the volatility has been very low so we are not exactly seeing a bullish picture. What seems to be happening is that we are stuck between 1.3000 above and 1.2850 below, and the market needs to break out one way or the other. The price action is slightly bullish but not strongly enough to really give us any clues. For this reasons, as we are in a long-term downwards trend, I would still be looking for short opportunities if we pull back to 1.3000 and then reverse with some momentum.

There is then the issue of how much lower can we go. We approaching a very crucial support level at 1.2750, so there may not be a lot of down side left before a sizeable pull back would happen.

EURUSD 91614

There are high-impact events scheduled today concerning both the EUR and the USD. At 10am London time there will be a release of German ZEW Economic Sentiment data, followed later by US PPI data at 1:30pm. Therefore today should be a more active day 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.