Yesterday’s signals were not triggered, as the bullish price action took place a few pips below key support levels.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1433.
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.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1340, 1.1308, or 1.1296.
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.
Remove 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
I wrote yesterday that although I preferred to be bearish, I couldn’t ignore we have arrived at an area with a cluster of the three support levels which may be hard to break. Any of them could be today’s pivotal level. The longer that 1.1340 holds, the more likely it will be that we see a bullish counter-trend move today.
As it happened, the price continued to fall slowly, and penetrated down to just below the second level, close to the round number at 1.1300, before rising quite strongly over recent hours, and all the support levels are back. What is behind this new bullishness is not only the cluster of support, there has also been news that the U.K. and the E.U. have reached an important financial services deal over Brexit, which boosts both currencies, especially the British Pound. Yesterday also saw comments from a British minister suggesting an overall Brexit deal should be reached during November, although the minister walked these comments back later. Nevertheless, despite the long-term bearish trend, it looks quite likely that today will see still higher prices in this currency pair, although the real action is in GBP/USD.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.