EUR/USD Forex Signal - 12 January 2015

Adam Lemon

EUR/USD Signal Update

There are no outstanding signals.

Today’s EUR/USD Signals

Short Trade 1

  • Short entry after bearish price action on the H1 time frame immediately following the next touch of 1.1893.

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

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

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

EUR/USD Analysis

My most recent analysis last week concluded that it was really hard to determine what is going to happen next with this pair, as we have reached historically supportive levels, but remain in a strong, long-term downwards trend. Moreover, these historically supportive levels were reached nine years ago, and there is no level that really sticks out.

Having said that, the 1.1750 level would seem a psychologically rational place for any support to kick in, so it is not surprising this happened in the second half of last week, with the price rising about one hundred pips from a low of 1.1753. My colleague Christopher Lewis sees these levels as a good bargain price to get long, as the 1.18 level is holding so far.

I am reluctant to trade against such a strong trend, and I actually see a flipped support to resistance level not far above the current price at 1.1893. Should the price reach this level today, it should be a good opportunity to look for a short trade.

EURUSD 11215

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

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

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