Forex Trading: EURUSD Technical Analysis – July 22, 2019

The Euro (EUR) inched lower against the US Dollar (USD) on Monday, this caused a decrease in the price of EURUSD, bringing it to more than 1.1200. The price of the pair decreased after major economic news released. Considering the price movement of the pair over the last few days, it is anticipated that the technical bias may remain bullish because the pair’s price marked a lower high in the recent downside move.

EUR/USD Technical Analysis

As of this writing, the currency pair is being traded around 1.1190, resistance can be seen around 1.1236,  the 61.8% Fib level resistance ahead of 1.1312,  the trendline resistance and then comes 1.1428, the key horizontal resistance level as shown in the given below chart.

Talking about the downside, support can be seen around 1.1186, the key horizontal support level ahead of 1.1182, the psychological number and then 1.0721, the low of January 03, 2017 which is likely to prevent the price from decreasing further as demonstrated in the given above chart. The technical bias may remain bullish as long as 1.1236, the major horizontal support level remains intact.

The United States’ Average Hourly Earning News

In the United States, the figure concerning the labor’s earning on an average rate per hour remained 3.2% in March, as compared to 3.4% during the month before, down beating the economist expectation which was 3.4%. The data is sourced from the news released by the Department of Labor, United States.

The data takes into account after the number of people employed in the labor category over the given period of time. It is to be noted that the figure is derived on a sampling basis. It should not be deemed as an exact figure but it can be considered as an average. It indicates the cost of inflation rated as well as the strength of the labor market. Generally speaking, high reading in this regard is considered as a bullish trend for the US Dollar (USD) and vice-versa.

Trade Idea

Considering the overall price behaviour of the pair over the last couple of days, selling the EURUSD around current levels can be a good decision in short to medium term.

Trading Forex does have its risks but with proper risk management and a consistent strategy that uses a form of analysis, be it technical, fundamental or sentimental, you can be hugely profitable. It is worth noting that trading, of course, has its pros and cons, we’ve highlighted those to make sure you’re aware of the key mistakes beginners often make.