EUR/USD Forex Signal - 11 January 2016

EUR/USD Signal Update

Last Thursday’s signals were not triggered as the bearish price action occurred above 1.0835.

 

Today’s EUR/USD Signals

Risk 0.75%

Trades may only be taken 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 touch of 1.0834.

* 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.

 

Long Trade 1

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0772.

* 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 1.1000.

* 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 2

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1053.

* 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 bullishness continued until late last Thursday before the price again fell sharply, but it found support at 1.0834 and moved up again quite strongly. It just made a new high after the weekly open beyond the resistance of 1.0940, however the price is falling again as at the time of writing.

The overall picture suggests a lot of ranging around between support and resistance levels without a clear direction, however the Euro has shown quite a lot of strength lately so it is hard to hold onto shorts here for very long without getting stopped out.

The situation is good for support and resistance traders, as there are several levels nearby where turns are likely. As we are already falling from 1.0940 I would not look for another short there just yet, but instead for a long if we reach 1.0834.

EURUSD

There is nothing 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.