Abstract：EUR/USD stands at 1.1898 level after today’s minor drop. Today’s retreat could give us a great chance to go long as the USDX’s drop will weaken the greenback. The pair continues to move in range, an upside breakout will definitely suggest buying.
EUR/USD stands at 1.1898 level after today‘s minor drop. Today’s retreat could give us a great chance to go long as the USDXs drop will weaken the greenback. The pair continues to move in range, an upside breakout will definitely suggest buying.
The USD is vulnerable after the latest mixed US figures, technically, the currency is expected to resume its correction versus the other major currencies. It could drop ahead of the NFP, Unemployment Rate, Average Hourly Earnings if the US data will disappoint till Friday.
● USDX Deep In The Negative Territory!
USDX has rebounded today but the bias is bearish after the aggressive breakdown below 92.55 static support level. It has retested the upside 50% Fibonacci line of the descending pitchfork and not it could approach and reach the SL1 and SL2.
A further drop pushes EUR/USD towards fresh new highs. RSI indicator signals a bullish divergence on the Daily chart but this is not enough for us to consider a reversal. USDX could turn to the upside and it could develop a leg higher if the current breakdown below 92.55 level will be invalidated by a strong bullish candle today.
A drop below 92.13 level will attract more sellers, 91.00 could be used as a short-term downside target.
● EUR/USD Breakout Attempt!
EUR/USD is expected to violate the second warning line (WL2) of the descending pitchfork. A valid breakout validates further bullish run far above 1.2 psychological level. The failure to reach and retest the 1.17 confirms stronger bulls.
The warning line (WL2) acts as a strong dynamic resistance, thats why a valid breakout will announce and validate more gains. The 350% Fibonacci line is seen as a potential upside target.
Only another false breakout with great separation above WL2 could send the quote down in the short term.
● XAU/USD Rebound In Play!
Gold is traded at $1,964 level and is expected to return to $2,000 psychological level soon. USDs further drop the yellow metal to increase again after the last temporary drop. The failure to close below the 150% Fibonacci line signal another strong upside momentum.
A valid breakout above $2,000 level and above the first warning line (WL1) suggests buying with a first target at $2,075 all-time high.
● USD/JPY Upside Invalidated!
USD/JPY registered an amazing drop on Friday signaling a larger drop in the upcoming period. The Japanese Yen could appreciate versus its rivals as the Japanese Consumer Confidence was reported at 29.3 points, beating the 28.7 estimates, the Housing Starts dropped only by 11.4%, less compared to the 12.0% forecast, while the Prelim Industrial Production rose by 8.0%, exceeding the 5.0% estimate.
USD/JPY move in a range between 105.10 and 107.06 levels, a downside valid breakdown signals further drop towards 104.18 former low.
[About the Author]
Olimpiu Tuns is a seasoned market analyst / trader / trainer on the financial markets with expertise in forex, cryptocurrencies, commodities, futures, options, index, CFD for more than 8 years. He is also a famous blogger in both technical and fundamental analysis, trading signals, trade setups, etc.
He has worked as a Market Analyst / Consultant for three major Brokerage companies, Admiral Markets, MultiBank Exchange Group and InstaForex (live webinars, market analysis, educational materials, video analysis, video tutorials, ghostwriting, content creator), as a Social Media Manager and as a Financial Markets & Crypto Analyst / Contributor for very important news portals/blogs (investing.com, benzinga.com, forexalchemy.com actionforex.com, countingpips.com), websites, educational platforms (Forex.Academy, Forex.Today), independent clients, etc.
Olimpiu Tuns currently works as a Financial Markets & Crypto Analyst / Signal Provider / Trader / Trainer.
