EUR/USD Signal- Dec. 31, 2013

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By: DailyForex.com

EUR/USD Signal Update

Yesterday’s signal was not triggered and expired.

Today’s EUR/USD Signal

Risk 0.25%.

Entry should be made between 9am and 2pm London time today only.

Long Trade 1

Enter long at the next bar break of an hourly pin bar rejecting and closing above the support level of 1.3712. The pin bar must open and close within the top third of its range and should be larger than any of the previous 5 bars If this level is not touched and rejected by the same hourly bar, or if an hourly bar closes more than a few pips below this level, the trade is immediately invalidated and should not be taken.

Stop loss 1 pip below the local swing low.

Take the risk off the position at 1.3750. Try to get a reward to risk of 1:1 overall but make the final exit before trading ends today, ideally well before.

EUR/USD Analysis

The uptrend in this pair was quietly maintained over the Christmas period with bullish trend lines holding but minor resistance being established at 1.3712, before spiking upwards dramatically by about 200 pips on Friday. Although the price quickly retreated from this spike, I agree with Christopher Lewis’ belief that the line of least resistance is still currently upwards, so we should take a long bias. The price also rose quite healthily yesterday before falling off later and during the Asian session that is just ending.

There is important news today for the USD at 3pm (CB Consumer Confidence) London time which might move this pair. However it is also a public holiday in Germany which might make things quieter.

I am prepared to look at a long trade confirmed by price action should we return to the previous resistance level of 1.3712 during the London session today, at least after 9am London time.

We are still in a bullish channel, as can be seen in the chart below:

EURUSD Signal 123113

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.