My previous EUR/USD signal on 6th November was not triggered.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered prior to 5pm London time today.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1587, $1.1608, or $1.1634.
- 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 $1.1569, $1.1543, or $1.1510.
- 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.
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EUR/USD Analysis
In my previous EUR/USD analysis last Thursday, I thought that the EUR/USD currency pair was most likely to rise from the $1.1500 area to reach $1.1547, although I also said I wasn’t very confident about this.
This was a good call, as it played out exactly as I called it over the day.
The technical picture now is more bullish. We see a rise followed by a consolidating triangle based at $1.1543 and we then saw a bullish breakout from that triangle. After that, we saw a higher low put in at $1.1569 which so far has continued to hold.
These are all bullish signs, and they are backed by increasing risk-on sentiment, which is boosting the Euro, which has become a relatively strong currency. However, the US Dollar is also strong as it is not acting as a safe haven, and optimism over the US stock market brings inflows into the USA which must be converted into demand for US Dollars.
As both currencies are strong, it is likely that we won’t see the strongest moves in the Forex market in this currency pair, but a long trade from a bounce off a support level is likely to be the best trade which might set up here today.
There is nothing of high importance due today regarding either the Euro or the USD.
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