EUR/USD Signal- Jan. 8, 2014

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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 between 2pm and 5pm London time today only.

Take the risk off any open trade at 6:30pm London time today.

Short Trade 1

Enter short at the next bar break of an hourly pin or engulfing bar rejecting and closing below the resistance level of 1.3715. If this level is not touched and rejected by the same hourly bar, or if an hourly bar closes more than a few pips above this level, the trade is immediately invalidated and should not be taken.

Stop loss 1 pip above the local swing high.

Move the stop loss to break even when the trade is 40 pips in profit and let the trade ride.

Long Trade 1

Enter long at the next bar break of an hourly pin or engulfing bar rejecting and closing above the support level of 1.3488.

Stop loss 1 pip below the local swing low.

Move the stop loss to break even when the trade is 40 pips in profit and let the trade ride.

EUR/USD Analysis

As the markets have been awaiting the slew of important news that begins later today around the New York open, the pair was quiet yesterday. The only significant things that happened were a failure to move above 1.3650 for the second day in a row, and that the upper trend line of the bearish channel was broken to the upside, as can be seen in the chart below:

EURUSD Signal 1814

We remain within the long-term wide bullish channel that has been established since the summer of last year. While this trend line may be broken and is currently not far below us, there is another bullish trend line running from August last year that is roughly confluent with the support level at 1.3488.

The best trade would probably come from news later today pushing the pair down for a buying opportunity at 1.3488. However there is a short opportunity too and things could go either way, 1.3715 could be a good resistance level.

There is very important news later today at 1:15pm London time for the USD (ADP Non-Farm Employment Change) and again at 7pm London time (FOMC Meeting Minutes), these items are certain to make the pair active. Things should be very quiet before the New York session begins.

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.