EUR/USD Forex Signal - 23 December 2014

EUR/USD Signal Update

Yesterday’s signals were not triggered and expired as none of the key levels were hit before 5pm London time.

Today’s EUR/USD Signals

  • Risk 0.75%

  • Trades must be entered only before 5pm London time.

Short Trade 1

  • Go short after bearish price action on the H1 time frame immediately following the next touch of 1.2368.

  • 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 2

  • Go short after bearish price action on the H1 time frame immediately following the next touch of 1.2475.

  • 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 the long-term bullish trend line currently sitting at about 1.2220.

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

  • Move the stop loss to break even once the trade is 40 pips in profit.

  • Take off 25% of the position as profit when the trade is 40 pips in profit and leave the remainder of the position to ride.

 

EUR/USD Analysis

I was expecting the price to rise yesterday after we had bounced up off the very long-term bullish trend line. Although the price did hold up for most of the day it eventually fell and retested the trend line overnight, where it produced another bullish bounce, albeit a small one.

If we are going to move up from here, two tests should probably be enough, so be very cautious about entering a long if we retest the trend line today. Nevertheless, as it is such a long-term trend line, it is worth an attempt at a long-term long trade.

There is resistance above at 1.2368.

EURUSD 122314

There are no high-impact data releases scheduled today directly concerning the EUR. Regarding the USD, at 1:30pm London time there will be releases of Core Durable Goods Orders and Final GDP data, followed by New Home Sales data at 3pm. This pair is more likely to be more active during the New York session than the London session.

Adam Lemon

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.