EUR/USD Forex Signal: Significant Resistance at $1.0121 – 18 July 2022
ECB meeting this Thursday will be important for the EUR.
My previous EUR/USD signal last Tuesday could have produced gave a profitable long trade from the support level I had identified at parity ($1.0000).
Today’s EUR/USD Signals
Trades must be taken before 5pm London time today.
Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.0121 or $1.0221.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.Remove 50% of the position as profit when the price reaches 50 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 timeframe immediately upon the next touch of $1.0073, $1.0042, or $1.0000.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.Remove 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.
In my last analysis of the EUR/USD currency pair on Tuesday last week, I noted the extremely bearish technical picture, so I thought that the price should be able to continue to move down easily.
I saw a potential short trade opportunity from pullbacks that then revert into the trend (especially in the $1.0050 area) but was watching out for a bullish reversal at or below parity.
This was a good call at least insofar as my warning about a potential bullish reversal from the parity level, although the price did break below $1.0000 later in the week.
The technical picture is now much less bearish as we are seeing a bullish over and under pattern with Friday’s low near the support at $1.0000. However, bulls are now facing very strong resistance at $1.0121 which is a major inflection point within the dramatic last week of trading.
This level at $1.0121 looks attractive for a short trade entry if it is reached and if there is a reversal there. On the other hand, if the price gets down to parity again, there seems to be strong buying at and below $1.0000, so that could be an interesting level for a long trade.
If the price gets established above $1.0121 later, that will signify a much deeper bullish retracement into the long-term bearish trend, and a potential trend reversal. The parity level is very significant.
There is nothing of high importance scheduled today regarding either the EUR or the USD.
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