Good day, dear traders! I present to your attention a trading idea for the EURUSD pair.
So, as I expected in the article dated 11/14/19, the euro rose against the dollar and, moreover, grew significantly. On the one hand, this was caused by the speeches of Powell and Fed officials on Thursday-Friday, and this is clearly visible in the dynamics of the US sessions, on the other hand, yesterday's growth was caused by "an unexpected meeting of Trump and Powell", after which Trump was in a good "tweet mood". As we know, the US president constantly criticized Powell for high-interest rates, and, in principle, can't do anything with Powell, which incredibly infuriated him. But yesterday's events suggest that they have agreed on something and traders reacted to this weakness of the dollar, laying on a possible rate cut in December. The weakness of the dollar yesterday was manifested not only in the EURUSD pair but also clearly in gold, look at the futures:
The EURUSD pair has a very interesting situation associated with the stops of classic traders. The matter is in this situation, most traders trading on the classical technical analysis will work for a decrease from the mirror level in the area of 1.109:
We are not a crowd, and we work against the crowd, but we must admit that the first test of mirror levels works well, but let's look at this situation from a different angle, from the "hunter for feet":
In this vein, I recommend working on the increase with a rollback from the initiative "Powell-Trump" with the first goal of profit-taking at 1.10930 and the second goal of 1.11800.
Important news drivers this week will be the interest rate on China tomorrow morning and Christie Lagarde's speech (instead of Draghi's) on Friday morning.
Good luck with trading and see you in the evening review!