16th Nov
Weekly Trend direction: Bullish
Weekly trend reversal level: 1.4820
Key G7 support levels: 1.4900, 1.4820
Counter-trend opportunities:
Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal.
Today's trade suggestion:
Tricky conditions as the euro grapples with the idea that we may have a medium term top in place at the key 1.5060. Still, last week’s direction was (just) bullish, although not very convincing at all. Bear in mind that at major turning points there is often a titanic battle between both sides (bulls and bears) and this leads to messy conditions which may last for several weeks. All that having been said, we’ll go with the long direction whilst above the weekly reversal level at 1.4820. This leaves just two real support levels – 1.4820 and Friday’s bullish engulfing candle reversal level at circa 1.4900. Look to buy dips to these levels, keeping in mind that’s things could get messy. I suggest trading lightly if you must trade, or waiting for a change in direction one way or the other (a new dramatic rally above 1.5060 or a drop below 1.4820). Target for rallies is the Fibonacci extension level at 1.5120, and then 1.5400
Summary:
Buy dips to support levels if you must. Target 1.5120 and then 1.5400.
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