EUR/USD Forex Signal - 11 December 2014

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By: DailyForex.com

EUR/USD Signal Update

Yesterday's signals expired without being triggered, as although the price did hit the bearish trend line shown in yesterday's chart and form a bearish pin bar, it never broke to the down side, so there was no short entry to be taken.

Today’s EUR/USD Signals

  • Risk 0.75%

  • Trades must be made before 5pm London time.

 

Short Trade 1

  • Go short after bearish price action on the H1 time frame immediately following the next touch of 1.2503.

  • Place the stop loss 1 pip above the local swing high.

  • Move the stop loss to break even once the trade is 20 pips in profit.

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

Short Trade 1

  • Go short after bearish price action on the H1 time frame immediately following the next touch of 1.2564.

  • Place the stop loss 1 pip above the local swing high.

  • Move the stop loss to break even once the trade is 20 pips in profit.

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

Long Trade 1

  • Go long after bullish price action on the H1 time frame immediately following the next touch of 1.2401.

  • Place the stop loss 1 pip below the local swing low.

  • Move the stop loss to break even once the trade is 20 pips in profit.

  • Take off 25% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

Long Trade 2

  • Go long after bullish price action on the H1 time frame immediately following the next touch of 1.2342.

  • Place the stop loss 1 pip below the local swing low.

  • Move the stop loss to break even once the trade is 20 pips in profit.

  • Take off 25% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

EUR/USD Analysis

We have broken up through a fairly long-term bearish trend line and the resistance that was at 1.2400. The pair has been moving bullishly and flipping resistance to support at a few levels now, probably including 1.2400. These are all bullish signs.

There is key news coming shortly in the market that should be watched closely.

Technically the next test is whether the price can break up past 1.2500, which should be a signal that some kind of fairly strong pull back is under way. Alternatively, if the price falls back below 1.2400 and stays there, that will probably be fatal for the bulls, at least in the short term.

We almost hit 1.2500 earlier but failed to clear it, so it will probably take EUR-bullish news later to push us above that level, if at all.

EURUSD 121114

There are high-impact data releases scheduled today directly concerning both the EUR and the USD. Regarding the EUR, there will be a release of Targeted LTRO data at 10:15am London time. Concerning the USD, there will be releases of Retail Sales and Unemployment Claims data at 1:30pm. It will probably be a more volatile day today for this pair than yesterday.

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.
Learn more from Adam in his free lessons at FX Academy.