EUR/USD Forex Signal - 9 December 2014

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By: DailyForex.com

EUR/USD Signal Update

Yesterday’s signals were not triggered and expired, as the price never reached either 1.2400 or 1.2133.

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 1.2357.

  • 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 1.2400.

  • 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 3

  • 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.

EUR/USD Analysis

The market is pretty active, as although we had no major news yesterday and it was a Monday, this pair still managed to move up 100 pips or so, well above its weekly open and against the long-term trend.

We are now approaching a moment of truth as there are three levels of resistance plus a major bearish trend line above us. Each of these can give a good opportunity to go short. The first level of 1.2357 should be treated with special caution. I expect 1.2400 to be more solid.

If 1.2400 and the bearish trend line are both properly broken to the upside, this will be a bullish sign, indicating that a major pull back is probably beginning. My colleague Christopher Lewis sees some signs of possible short-term bullishness.

EURUSD 12914

There are no high-impact data releases scheduled today directly concerning either the EUR or the USD. It is likely to be a quiet day for this pair.

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.