For this Level, just keep doing what you've been doing to get here. By now, you should have Agility and Endurance turned up as high as possible (probably nearly maxed out, if you've been killing lots of monsters). Save up for the sword as early as you can, as it's the best weapon, but on Hard, I actually had better luck getting each melee weapon in turn, one after another, in order of price. But you should buy the most expensive weapon you can afford, between levels.
To fight the enemies, you can walk near them or let them get close to you, then back up as soon as they start to strike. As soon as you've dodged the strike, attack and move forward to land a blow just before they attack again. Rinse and repeat. Sometimes, you can get in enough strikes to kill them after their first attack, but it can be risky. Sometimes they use a quick attack that can squeeze in between your own attacks, so it's probably better to play it safe (since there are no health refills on Hard).
It kind of works on the boss, too, but I found it easier to strafe around bosses and swing your weapon when the crosshairs would line up (the crosshairs turn red when you are in range and lined up, but you have to time it with the actual impact of your weapon). In fact, on hard, I found it to be good practice to use this method on most of the enemies. If you are strafing in a circle around them, they can't seem to hit you (they swing, and then you've strafed out of the way before impact). If you have room and you can get proficient at this method, you can avoid taking damage at all!
If you need more detailed help, check out the Solution for beating level 7 on Hard: