EUR/USD Struggling To Hold Ground
EUR/USD changed little in the morning and looks undecided on the short term. Could increase a little in the upcoming days if the USDX will slide further. The dollar index is trading in the red again and resumes the yesterday’s bearish candle, a minor drop is favored after the yesterday’s poor US data.
USDX is trading right above the 93.40 level, but technically is somehow expected to drop after the failure to reach and retest a dynamic resistance. We’ll see what the US data will brig in the afternoon, the inflation numbers could shake the markets again.
The dollar index could move in range on the short term till will recapture enough directional energy to be able to start a broader rebound. I’ve said in the previous weeks that only an accumulation move will signal a reversal.
Price decreased a little, but personally, I’m expecting to see a minor increase after the false breakdown below the 1.1712 horizontal support (resistance turned into support). Actually, it could move sideways till will reach the median line (ml) of the minor ascending pitchfork, a retest will signal another bullish momentum.
Only a breakdown below the median line will attract more sellers, which will drive it towards new lows on the short term. It maintains a bullish perspective as long as is located above the median line (ml) and above the 1.1712 support level. The greenback needs support from the FED to be able to dominate the currency market in the upcoming period.
USD/CHF Bounce Or Break
USD/CHF opened with a gap down today and dropped as much as 0.9598 level, much below the 0.9617 yesterday’s low. Price has come back and closed the minor gap, but is premature to say that will climb higher in the upcoming hours because is under massive selling pressure.
A breakdown below the warning line (WL2) looks imminent after the failure to reach and retest the 250% Fibonacci line (ascending dotted line). Only some good US data could save it from downside, a valid breakdown will signal a drop towards the 0.9498 and towards the 0.9440 static support.
AUD/USD Pressuring Critical Support
Price is trading in the red, resuming the corrective phase. It has dropped as much as 0.7838 today, but has squeezed in the last hours and continues to pressure the median line (ML) of the major ascending pitchfork. A valid breakdown below the median line (ML) will signal a larger drop in the upcoming weeks. You don’t need to rush because we have another major support at the 0.7835.
By Olimpiu Tuns
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