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FX.co ★ Intraday technical levels and trading recommendations on EUR/USD for July 22, 2014

Intraday technical levels and trading recommendations on EUR/USD for July 22, 2014

Intraday technical levels and trading recommendations on EUR/USD for July 22, 2014

The price zone of 1.3800-1.3880 (dotted on the chart) provided considerable SUPPLY for the EUR/USD pair. This price zone managed to pause the bullish momentum that originated off the depicted bullish trend line.

A Double Top pattern was formed after the neckline located at 1.3700 got broken down. Projection targets have already been hit shortly after.

Previous prominent bullish engulfing daily candlesticks emerged off 1.3500 (the lower limit of the ongoing channel) thus fixating again above 1.3560 (the key level corresponding to the previous prominent bottom).

Later on, the EUR/USD pair has been facing difficulty to fixate above the key level around 1.3640-1.3660, then successive bearish engulfing candlesticks originated off this price zone.

Bearish pressure which originated off 1.3650 has been applying pressure on 1.3560 (the key level corresponding to the previous prominent bottom) thus exposing 1.3500 for retesting.

Bullish fixation above 1.3490 - 1.3640 is essential for the bulls to recover and acquire momentum to initiate a corrective move within the current steep bearish trend.

Intraday technical levels and trading recommendations on EUR/USD for July 22, 2014

As long as the bulls keep defending the demand zone between 1.3500-1.3475, the bulls are most likely to push higher.

On the other hand, breakdown of 1.3500 invalidates the bullish structure allowing the bears to pursue initially towards the price level 1.3420 (Fibonacci Expansion 100%).

The bears have already pushed towards 1.3460 which showed immediate bullish recovery.

Bullish pressure may be applied around the current prices provided that the bears fail to fixate below 1.3500 on the daily basis. However, the current short-term trend remains bearish towards 1.3420 until proven otherwise.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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