EUR/USD Signal- Dec. 9, 2013

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By: DailyForex.com

EUR/USD Signal Update

Thursday’s signals were not triggered and expired.

Today’s EUR/USD Signal

Risk 0.50%

Entry should be made only before 5pm London time today.

Long Trade

Enter after a next bar long break of an hourly confirming pin bar, engulfing bar or strong outside bar as follows: After rejection from the lower trend line marked in pink, 1.3650, and the daily S1 pivot point at 1.3645 all together by a single hourly bar. The signal is invalidated after the first hourly bar closes below the trend line marked in pink. Stop loss should be the local swing low, or 1.3620 if that would be extremely close to the entry price.Take 75% of the position as profit at 1.3739 and leave the rest to ride.

EURUSD Signal 12913

EUR/USD Analysis

There are no major economic data releases scheduled for today, so it is likely to be a slow day with little strong movement, if any.

I have a long bias as last Thursday’s important news release sent the price to almost touch the channel’s lower, bullish trend line, before reversing strongly against the data and breaking the upper trend line. This trend line (marked in pink in the chart above) was tested from the other direction last Friday by a very strong pin bar, but not a single hourly candle closed below the broken trend line and the retest was used as a launch to move the price into another bullish thrust.

We now have a confluence of likely support around 1.3660 – 1.3645 with the S1 pivot, the broken trend line, and the resistance turned into support level at 1.3650 all combining to make this a likely good entry zone for a new long trade, if supported by price action when the price returns to the area.

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.
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