EUR/USD Forex Signal - 22 July 2019

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EURUSD: More bearish but 1.1199 strong support

Last Thursday’s signals were not triggered, as the bullish price action took place some way below 1.1225.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered before 5pm London time today.

Short Trade Ideas

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1244, 1.1279, or 1.1317.

  • Place the stop loss 1 pip above the local swing high.

  • Move 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 ride.

Long Trade Ideas

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1199 or 1.1161.

  • Place the stop loss 1 pip below the local swing low.

  • Move 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 ride.

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.

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EUR/USD Analysis

I wrote last Thursday that I was wary of trading this currency pair today due to potential resistance at 1.1250 and potential support at 1.1200 which was boxing in the price and making direction uncertain. This was a good all as the price has continued to range. However, the price is now towards the bottom of that range, approaching the key support level at 1.1199, which makes the picture slightly bearish, in line with the weak long-term bearish trend. Nevertheless, I still expect 1.1199 and 1.1279 will hold today, so it is probably only worth scalping off either or both levels now. I have no directional bias on this currency pair today.EURUSDThere is nothing of high importance due today regarding either the EUR or the USD.

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.