Brief trading recommendations for EUR/USD, GBP/USD and USD/JPY on 07/22/20

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The most active trading instrument of the past day is considered to be the EUR/USD currency pair, which completed the lateral fluctuation of 1.1400/1.1460, breaking through the upper border, during which the European currency rushed towards the values of 1.1500-1.1550, which is considered an inertial move on the market. Such a rapid strengthening of the price leads to overbought, where market participants, due to the risk of correction, begin to close previously opened buy positions, which leads to a slowdown in the inertial course and as a fact of correction in the market.

Based on the above, it can be assumed that it will serve as a kind of resistance in the area of 1.1550/1.1600, where market participants will start fixing previously opened deals, which will lead to a reverse price movement.

Sell positions will be considered below 1.1515, towards 1.1475.

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The GBP/USD currency pair, in the wake of the upward move, managed with surgical precision to approach the price level of 1.2770, which has repeatedly played the role of resistance in history, stopping and reversing the quote. The price approaching the level of 1.2770 was no exception, the natural basis played its role in the market, the quote gradually moved to a decline, where traders received a sell signal. Based on the already existing signal, it can be assumed that if the price consolidates below the level of 1.2710, the downward interest will continue, directing the quote towards the values of 1.2685-1.2620, forming a correction in the market.

An alternative scenario, which every trader should have, considers keeping the quote within the values of 1.2720/1.2770, which will mean a prevailing upward interest, which does not make it possible to fulfill the logical basis and adjust the value of the pound. In this case, it is worthwhile to carefully analyze the price fixing points above the value of 1.2770, as this may signal a further upward movement of the price in the direction of the values 1.2810-1.2885.

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For the USD/JPY currency pair, a sharp downward movement can be noticed, during which the quote approached the area of 106.70/106.90 once again, where the pivot points were previously found. A consistent deceleration of the price in the same coordinate indicates a logical basis that traders operate in when fixing previously opened deals, as well as opening new deals in the event of a rebound or breakdown of the price level.

Therefore, depending on whether the price consolidates below or above 106.70 / 106.90, the next direction of price movement can be predicted.

It is recommended to sell the pair at a price below the level of 106.70 with the prospect of a move to 106.40-106.00.

It is recommended to buy a pair at a price above the level of 106.90 with the prospect of a move to 107.20.

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The material has been provided by InstaForex Company - www.instaforex.com