EUR/USD Forex Signal - 16 February 2016

EUR/USD Signal Update

Yesterday’s signals expired as the bullish price action took place below 1.1162.

 

Today’s EUR/USD Signals

Risk 0.75%

Trades must be entered before 5pm London time today only.

 

Long Trade 1

* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1075.

* 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.

 

Long Trade 2

* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of the trend line currently sitting at about 1.1025.

* 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.

 

Long Trade 3

* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1003.

* 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 Trade 1

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.1337 and 1.1400.

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

* 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

This pair has continued to fall and broke below the anticipated support at 1.1162 which should now be erased as a key level.

The key thing with this pair is that it is now pulling back into an area which we should expect to be supportive. The problem is that it is not clear at what price the support will eventually kick in. Nevertheless the area at around 1.1050 was the upper limit for a few months and we had a forceful breakout above that during the recent leg up, so it is logical to expect some kind of bounce.

At the time of writing it does not look like the price is ready to move up yet. A bounce off the round number at 1.1100 or the level just below that at 1.1075 would be logical.

I think today is going to be an up day.

EURUSD

There is nothing due today concerning the USD. Regarding the EUR, it is expected that the German Constitutional Court will at some time issue a key ruling on the legality of the ECB’s purchase program. At 10am London time there will be a release of German ZEW Economic Sentiment data.

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.