EUR/USD Forex Signal For December 2, 2014

EUR/USD Signal Update

Yesterday’s signal to go short after a bearish rejection of the 1.2503 level was triggered. Look to protect profit or take partial profits at the first short-term bullish candlestick after the price reaches 1.2420. Levels at 1.2405 and 1.2360 make realistic near-term targets.

Today’s EUR/USD Signals

Risk 0.75%

All trades must be entered before 5pm London time only.

Short Trade 1

Short entry after bearish price action on the H1 time frame immediately following the next touch of 1.2564.

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

Long entry following bullish price action on the H1 time frame immediately following the next touch of 1.2355.

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

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

Right at the end of yesterday’s London session the H1 chart printed a bearish inside candle that rejected both the long-term bearish triangular trend line and the expected resistant level at 1.2503. After breaking down quickly, it came back to retest the level, but then fell again during the remainder of the New York and Tokyo sessions. This was a shorting opportunity, which at the time of writing is perhaps 20 pips in profit. It remains to be seen how much further down the move will go. There may well be local support at around 1.2420 – 1.2400.

Technically this leaves all the levels and the narrowing triangle intact. As there is no high-impact news due today, it is quite probable that the triangle and highlighted horizontal levels will continue to hold.