FX.co ★ Trading Signal for EUR/USD for July 20 - 21, 2022: buy above 1.0170 (rising wedge pattern - 21 SMA)

Reports show that European Central Bank (ECB) policymakers would consider a rate hike of 50 basis points at the July 21 meeting.

According to the 4-hour chart, the euro is forming a rising wedge pattern. It is currently bouncing off the bottom of the uptrend channel and is likely to resume the uptrend and could hit 4/8 Murray at 1.0253 in the next few hours.

On the other hand, in the case of a technical bounce off 1.0151, it could be considered an opportunity to buy with targets at 1.0253. The price could even reach the 200 EMA at 1.0345.

The bullish bias for the euro could be lost if the euro closes below 1.0140 on the 4-hour chart. If the scenario comes true, we could expect an acceleration to the downside towards 2/8 Murray located at 1.0001.

Our trading plan for the next few hours is to buy the euro at current levels around 1.0170 with targets at 1.0200 and 1.0253. The eagle indicator is overbought. However, we could expect the uptrend to prevail.