EUR/USD targeting the 1.1700 level
Price increased in the morning and looks motivated to approach and reach new highs in the upcoming days. USD drops further versus all its rivals ahead the US data, another disappointment in the afternoon will send the EUR/USD much above the 1.1683 previous high.
USDX is trading in the red and is very close to hit the 0.9383 yesterday’s low, a further drop is favored because is under massive selling pressure on the Daily chart. The index should drop further because we don’t have any reversal sign at this moment, will increase a little in the afternoon only if the United States data will impress.
The main event will be the release of the CB Consumer Confidence, which could drop from 118.9 to 116.5 points.
Price increased a little and tries to approach the 1.1700 psychological level, but he needs to take out the minor resistance from 1.1683. Resistance can be found at the seventh warning line (WL7) of the former descending pitchfork, while the major static resistance is at the 1.1712 level. Is strongly bullish after the impressive breakout above the WL6 and could be attracted also by the upper median line (uml) of the ascending pitchfork.
USD/JPY on the way down
Price is trading in the red on the short term and is expected to drop much below the 110.00 psychological level if will have enough direction energy to take out the support from 110.61 previous low.
Should extend the sell-off after the failure to reach and retest the 38.2% retracement level and the broken downtrend line. Is moving sideways on the Daily chart, so is somehow expected to approach the 50% retracement level again, where he could find support again. The Yen dominates the currency market on the short term as the Nikkei failed to stay above the 20058 static resistance.
GOLD facing tough resistance
The yellow metal continues to move in range between the 23.6% and the 50% retracement levels, is trading at the half of this sideways movement. Is pressuring the outside sliding parallel line (SL), a valid breakout above this line will confirm a larger increase.
Technically should climb much higher on the Daily chart after the breakout above the upper median line (UML) of the major descending pitchfork and outside the minor descending pitchfork’s body. We may have a buying opportunity if will stabilize above the SL and if will come down to retest the warning line (WL1).
By Olimpiu Tuns
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