FX.co ★ EUR/USD: Trading signals for November 18, 2020

In the early American session, the EUR/USD pair is trading below the pressure line of 1.1870. It is important to note that this pair has made a double top at 1.1890 on the 1-hour chart.

If you look at the chart in the 3/8 murray zone it is a good resistance, since the Euro should break this zone of 1.1901. If it exceeds this level, we expect it to continue rising. After this zone, investors would focus the operation towards a probable test of the maximum of the month at 1.1920 and then visualize a potential upward movement until the August top at 1.1962, (4/8 of murray) only if it closes the daily price above 1.1890.

On the other hand, quiet trade below 1.1840 will give the possibility of the bearish market for EUR/USD in the next few hours. In the chart, you can see that the eagle indicator is showing a bearish signal.

The market sentiment is with a potential of 70% of investors who are selling this pair, which means that it still has bullish strength for the next few days, and it is likely that we will enter the 1.20 area in the short term.

Our recommendation is that you sell the Euro, only if it trades below 1.1870 and makes a pullback with targets at 1.1840. If the downward pressure accelerates, and breaks the 200-day EMA zone, the pair could enter a new downtrend with a target of 1.1779 (1/8 of a murray).

We can only buy as a last chance, if the pair bounces and consolidates at 1.1840, or if 1.1901 is broken, two key levels. Below 1.1840, we should take bearish positions. Above 1.19 we would enter before a bullish movement.

Trading tip for EUR/USD for November 18:

Sell below 1.1870 with take profit at 1.18.40 and stop loss above 1.1895

Buy if the pair rebounds around 1.1840 (EMA200) with target at 1.1880 and stop loss below 1.1810.

Sell if the pair breaks below 1.1840 with take profit at 1.1779 (1/8 murray) and stop loss above 1.1870.