EUR/USD Forex Signal - 13 July 2016

EUR/USD Signal Update

Yesterday’s signals produced a profitable short trade following the bearish inside candle rejecting the identified resistance level at 1.1120. It looks as if the price may be finding support now so it would probably be a good idea to take profit right away.

Today’s EUR/USD Signals

Risk 0.75%

Trades must be taken from 8am to 5pm London time today only.

 

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1025 or 1.0900.

  • 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 ride.

 

Short Trades

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1120, 1.1170 or 1.1234.

  • 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 ride.

EUR/USD Analysis

As expected, the level at 1.1120 worked as resistance, as this pair is very trendless and is tending to respect levels. The price action was quite nice and clear with a bearish inside candle giving a signal to enter short.

It looks as if the price may be finding support at the time of writing at around 1.1050, in fact it looks like it is making a bullish U shape and would logically be rising up towards 1.1120 again.

As I said yesterday, the best way to play this pair is to trade reversals off the levels but with conservative targets as there are not usually a lot of pips on offer.EURUSD

There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm 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.