My previous EUR/USD signal on 11th November was not triggered.
Today’s EUR/USD Signals
- Risk 0.75%.
- Trades must be entered prior to 5pm London time today.
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Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0610, $1.0638, or $1.0686.
- 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.
- Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.0490 or $1.0447.
- Put 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.
- Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
EUR/USD Analysis
In my previous EUR/USD analysis early last week, I wrote that we would probably see a pivotal point at $1.0686. However, this level was never reached that day, so my call was not actionable.
The technical picture now has become very interesting:
- The US Dollar rally seems to have run out of steam.
- Many assets, including this one, have begun to for a potentially bullish double bottom chart pattern.
- The potential double bottom here is maybe more technically significant than the ones we are seeing elsewhere, because the recent bottom is in the $1.0500 which is a major round number.
So, we see some bullish signs, but it must be remembered that this currency pair is still in a long-term bearish trend. However, I find it hard to see a significant bearish reversal happening today.
Bulls will probably be wise to wait now for a breakout beyond the resistance level at $1.0638 before considering a long trade today. Two consecutive hourly candles higher than that level with little upper wick before the first couple of hours of the New York session will probably be a good entry signal for this.
There is nothing of high importance due today concerning either the Euro or the USD.
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