EUR/USD Forex Signal- July 16, 2014

By DailyForex | Updated July 30, 2014 AAA

EUR/USD Signal Update

Yesterday’s signals expired without being triggered as although the price did reach 1.3575, it failed to print any bullish price action there.

Today’s EUR/USD Signals

• Risk 0.75% equity.

• Entries may only be made between 8am and 5pm London time today.

Long Trade 1

• Go long following bullish price action on the H1 time frame after the first touch of the major bullish trend line which is currently sitting at about 1.3520.

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

• Move the stop loss to break even when the price reaches 1.3580.

• Take off 50% of the position as profit at 1.3580 and leave the remainder of the position to ride.

Long Trade 2

• Go long at the first touch of 1.3486.

• Place a stop loss at 1.3445.

• Move the stop loss to break even when the price reaches 1.3520.

• Take off 50% of the position as profit at 1.3520 and leave the remainder of the position to ride.

Short Trade 1

• Go short following first touch of 1.3687.

• Place a stop loss at 1.3730.

• Move the stop loss to break even when the price reaches 1.3630.

• Take off 75% of the position as profit at 1.3630 and leave the remainder of the position to ride.

EUR/USD Analysis

I did forecast yesterday morning that we would move down, as implied by the price action, and that is in fact what happened. We broke below the support at 1.3575 pretty solidly and yesterday’s daily candle is a strong bearish engulfing candle that reversed the real bodies of the previous two daily candles.

It seems likely that we will continue to move down at least until we hit the lower, more important bullish trend line at around 1.3520. If we get below that, there has been plenty of support before close to 1.3500, so it may be hard to move below this area. A touch of the support level at 1.3486 is unlikely but should be a good long touch trade.

EUR/USD Signal

There are no high-impact data releases due today concerning the EUR, although there are concerning the USD which might well have some impact upon this pair. At 1:30pm London time London time there will be a release of US PPI data followed later by the Chair of the Federal Reserve testifying at 3pm.

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