EUR/USD Forex Signal 22/07: Short-Term Consolidation (Chart)

(MENAFN- Daily Forex) My previous EUR/USD signal on 16th July produced a profitable long trade from the bullish bounce at $1.1569.

Today's EUR/USD Signals

Risk 0.75%.

Trades must be taken before 5pm London time today only Trade Ideas

• Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1727, $1.1731, or $1.1765.
• 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.
• Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Long Trade Ideas

• Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1668, $1.1633, or $1.1617.
• Put the stop loss 1 pip below the local swing low.
• Adjust the stop loss to break even once the trade is 20 pips in profit.
• Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

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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/USD Analysis

In my previous EUR/USD analysis almost one week ago, I wrote that the EUR/USD currency pair was likely to recover due to the cluster of support levels starting at $1.1586. This was a great call as the long-term bullish trend reasserted itself in that support area, although it took the double bottom at $1.1569 to really get things moving again, with yesterday being the significant bullish day.

In yesterday's trading the price even managed to exceed $1.1700, but the Tokyo session has seen the price sell off in a fading interest kind of way. However, note that the bearish retracement has not been deep, so we could see bulls start to drive the price higher again.

The long-term bullish trend has been mostly driven by persistent weakness in the US Dollar over the long term.

I still see the best trading opportunities that might set up here as likely to be on the long side, and this pair does like to make deep pullbacks before eventually respecting the trend, so I would see any bullish bounce at any key support level as an opportunity to go long.

EURUSD Chart by TradingView

There is nothing of high importance due today regarding either the Euro or the USD.

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