My previous EUR/USD signal on 12th November gave a losing long trade from the support level at $1.1569, although the second set up would have been profitable if taken.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today only.
Short Trade Idea
- Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1613.
- 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.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
- Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1584, $1.1551, or $1.1543.
- 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.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
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.
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EUR/USD Analysis
In my previous EUR/USD analysis just over two weeks ago, I thought that the EUR/USD currency pair was not going to make any dramatic moves, but I thought that a bullish bias was a bit more likely to beat a bearish one. This was a good call on the day, with the low rejecting the nearest support level before the day’s upward price movement.
The technical picture now has not changed much – longer-term charts show that the bearish trend has slowed to nothing as we start to get flat lows and higher highs. This suggests that bulls are likely to have the upper hand, and the shorter-term trend is also bullish.
The US Dollar is weakening despite its bullish trend as markets increasingly price in a December rate cut by the Fed.
I think a long scalp from a bullish bounce at $1.1584 could be a good trade today, although the nearby resistance level at $1.1613 looks strong, so this may be nothing more than a scalp.
Note that it is a public holiday in the USA today, so this pair is probably only worth trading until the time when New York would open, as liquidity and price movement will probably decline sharply at that time.
There is nothing of high importance due today regarding either the Euro or the USD.
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