EUR/USD Signal- Dec. 5, 2013

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By: DailyForex.com

EUR/USD Signal Update

Yesterday’s signals were not triggered and expired.

Today’s EUR/USD Signal

Risk 0.50%
Entry should be made only between 2pm and 5pm London time today.

Long Trade 1
Enter after a next bar long break of a confirming pin bar, engulfing bar or strong outside bar as follows:
Entry only to be taken if no hourly bar has closed below the pink trend descending trend line shown in the chart below, and off a confirmation bar that is rejecting this trend line.
Stop loss should be local swing low.
Take 75% of the position as profit at 1.3647 and leave the rest to ride. Consider closing out before the weekend if the trade survives.

Long Trade 2

Enter long with a limit order at a touch of 1.3490.
Stop loss at the lower of local swing low or 1.3438, initially at 1.3438.
Move stop loss to break even at at 1.3535.
Take 50% of the position as profit at 1.3550 and leave the rest to ride. Consider closing out before the weekend if the trade survives.

EURUSD Signal 12513

Short Trade 1

Enter after a next bar long break of a confirming pin bar, engulfing bar or strong outside or inside bar as rejecting 1.3648.
Entry only to be taken if no hourly bar has closed above 1.3655
Stop loss should be local swing high.
Take 55% of the position as profit at the pink trend line and leave the rest to ride. Consider closing out before the weekend if the trade survives.

EUR/USD Analysis

The pair may move strongly today as there are important USD data releases at 1:30pm London time. We have no bias as the picture is choppy and the price channel which has been containing this pair for the last two weeks is wide. We have a new, steeper higher bullish trend line below. The overall picture is complex but we have levels and trend lines that are most likely to present any opportunity today as a reaction level after the news releases.

A zoom-out of the chart showing the big picture below:

EURUSD Signal2 12513

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.