The price fell below the previous support at $1.0288.
My previous recommendations were not activated on the 17th of November for trading the EURUSD currency pair, as none of the key support and resistance levels that I identified that day were reached.
Today’s recommendations for trading the EUR/USD currency pair
- The risk is 0.75%.
- Trades must be entered between 8am and 5pm London time today only.
Selling idea
- Take a sell trade after the bearish price action reverses on the H1 timeframe right at the next touch of $1.0288.
- Set the stop loss one pip above the local swing high.
- Set your stop loss order to break even once the trade is 20 pips in profit.
- Take 50% of the position as profit when the price reaches 50 pips of profit and let the rest of the position run.
Buy trade ideas
- Take a long trade after the bullish price action reverses on the H1 time frame immediately at the next touch of $1.0240, $1.0220, or $1.0141.
- Trade your stop loss 1 pip below the local swing low.
- Set your stop loss order to break even once the trade is 20 pips in profit.
- Take 50% of the position as profit when the price reaches 20 pips in profit and let the rest of the position run.
The best way to identify a classic “price action reversal” is to close an hourly candle, such as a pin bar, doji, outside candle or even just an engulfing candle with a higher close. You can exploit these levels or areas by observing the price action that occurs at the specified levels.
Analysis of trading the EUR/USD currency pair
In my previous analysis of EURUSD last Thursday, I thought we were clearly seeing momentum to the upside but that momentum is likely to be lost soon as the long-term moving averages remain well below the short-term ones, a sign of a premature trend.
This was a good prediction as the price has already reversed from previous highs near the key resistance at $1.0486 and made a clear bearish turn on the daily chart. We are now seeing the price trading to the downside and breaking below one support level which now looks likely to act as resistance at $1.0288.
The US dollar regained its strength towards the end of last week and started this week on a strong note, and this is also helping to push the price lower.
It is fair to say that we have a soft bearish environment right now, but I don’t really believe that the price is going to go much lower in the near term. There are two nearby levels of support that are very likely to hold the price in, at least for the day, as there is a very light calendar today with no news likely to move the markets significantly.
Today, I am ready to sell from a reversal to the downside that might occur with the rejection of the nearest resistance level at $1.0288, while being careful to monitor what happens at the support levels if they are reached. If the price is later established below $1.0220, this would be a bearish signal and would suggest that a deeper drop to $1.0141 is likely to occur after that.
Graph generated by platform TradingView
There is nothing expected today regarding the EUR or the USD.
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