19.07.202216:55 Forex Analysis & Reviews: Technical analysis recommendations on EUR/USD and GBP/USD for July 19, 2022

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

EUR/USD

Higher timeframes

The upward correction continues. Yesterday, the pair closed above the daily short-term trend, and today it has risen to the zone of influence of the medium-term trend (1.0284). The main challenge for bulls in the near term is to eliminate the daily death cross (1.0362 - closing level) and endorse the bullish edge with the short-term weekly trend currently at 1.0370. If the priorities change and the bears return to the market, then the supports at 1.0111 (daily short-term trend) and 1.0000 (important psychological level) may be important.

H4 – H1

The bulls' advantage in the lower timeframes allows them to develop a trend movement. The second resistance of the classic pivot points (1.0263) is now being tested, which may rise from the daily medium term (1.0284). In addition, this area strengthens the upper boundary of the Ichimoku cloud on H4. A breakdown and reliable consolidation above will open the way to the third resistance 1.0324, while a target for the breakdown of the H4 cloud will be formed. The levels of 1.0362–70 from the higher timeframes will also serve as benchmarks. The key levels of the lower timeframes now play the role of support in case of a corrective decline. Today, the key levels are 1.0141 (central pivot point of the day) and 1.0078 (weekly long-term trend).

***

GBP/USD

Higher timeframes

Bulls closed yesterday above the daily short-term trend (1.1907), now the nearest support. Today, there is a struggle for possession of 1.2000. If bulls manage to gain a foothold higher, the next stage will be the liquidation of the daily death cross (1.2082 Kijun + 1.2158 Fibo Kijun) and the struggle for possession of the weekly short-term trend (1.2210).

H4 – H1

Bulls currently dominate the lower timeframes. They are now testing the first resistance of the classic pivot points (1.2033), then their intraday upside targets are located today at 1.2119 (R2) and 1.2204 (R3). Key levels act as supports, currently at 1.1948 (central pivot point of the day) and at 1.1894 (weekly long-term trend). The breakdown and secure consolidation below will change the balance of power in favor of the bears, restoring the relevance of downside targets.

***

In the technical analysis of the situation, the following are used:

higher timeframes – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

H1 - Pivot Points (classic) + Moving Average 120 (weekly long-term trend)

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.