EUR/USD Forex Signal - 4 March 2015

Adam Lemon

EUR/USD Signal Update

Yesterday’s signals expired without being triggered.

Today’s EUR/USD Signals

Risk 0.75%

Trades must be made before 5pm London time.

 

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the first retest of the higher lower channel trend line currently sitting at around 1.1218.

  • 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.

 

Short Trade 2

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the first entry into the zone between 1.1260 and 1.1278.

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

  • Adjust the stop loss to break even once the trade is 25 pips in profit.

  • Remove 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to run.

EUR/USD Analysis

Despite yesterday’s pull back up to 1.1215 or thereabouts after the New York open, the downwards trend is fully intact, as can be seen from the chart below. Note how the lower trend line of the broken channel above has been acting as mobile resistance, and we are in a new bearish channel that has actually been steepening. So although the price has not so far been willing to really break below 1.1150, this still looks likely to happen.

If the price does break above the trend lines, there is a zone from 1.1260 to 1.1278 that should be strongly resistant.

My colleague Christopher Lewis is also bearish and agrees with me that we look ready to move down to 1.1100.

A sustained break back above 1.1300 would invalidate the downwards trend.

EURUSD 3415

There are no high-impact events scheduled for the EUR today. Regarding the USD, the ADP Non-Farm Employment Change will be released at 1:15pm London time, followed later by ISM Non-Manufacturing PMI data at 3pm.

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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