EUR/USD Forex Signal For December 7, 2015

EUR/USD Signal Update

Last Thursday’s signals produced a very profitable long trade following the bullish outside candle’s bullish reversal from the anticipated support at 1.0550. If profits are still floating it is probably a good idea to move the stop up to under the support zone at around 1.0800 at least.

Today’s EUR/USD Signals

Risk 0.75%

Trades may only be taken between 8am and 5pm London time today.

Long Trade 1

* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.0836 and 1.0789.

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

* 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 1

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1000.

* Place 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 price reaches 20 pips in profit and leave the remainder of the position to run.

EUR/USD Analysis

There was a big change in the market last Thursday caused by the ECB not acting to extend QE as far as the market expected. This had the effect of pushing up the value of the Euro significantly from the double bottom at the key support of around 1.0550. The big question now is whether the value is going to hold up.

There are two significant areas to watch right now: the area at around 1.0830 has acted as key highs and lows over previous weeks, and this is the area at which the price paused in its sharp upwards move last Thursday. It looks very much as if the price will fall back into this area and it may well bounce up quite strongly from here, even if only temporarily.

The other area to watch is the big round number at 1.1000 which is also quite confluent with last week’s high at around 1.0980 as well as the 50% retracement of the last large downwards leg.