EUR/USD Signal- Dec. 2, 2013

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By: DailyForex.com

Risk 0.50%
Entries should be made only between 2pm and 5pm London time today.
Enter at the first to occur only after a next bar break of a confirming pin bar, engulfing bar or strong outside bar as follows:

Short Trade

Enter short off retest of broken trend line (see chart below)
Stop loss at the higher of local swing high or 1.3623.
Move stop loss to break even and take profit on half of the position at 1.3505.

Long Trade

Enter long off rejection of 1.3554
Stop loss at the lower of local swing low or 1.3544.
Move stop loss to break even and take profit on half of the position at retest of broken trend line.

EURUSD H1 12213

EUR/USD Analysis

This pair has been in an upwards channel since early November’s pull back from the sharp fall from 1.3830 to below 1.3300. The pair is now struggling to make new highs and broke an inner trend line on Friday, so appears well-positioned for a short:

EURUSD H4 12213

There is resistance overhead at around 1.3650. A large pin bar rejecting 1.3650 and the trend line would be an excellent prompt to go short.

Bernanke is speaking at 1:30pm London time today so the price may swing wildly around that time.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.