EUR/USD On The Run
The currency pair increased significantly today and resumed the yesterday’s bullish candle. The today’s increase will invalidate the Wednesday’s breakdown, that’s why we may have another bullish momentum in the upcoming days. Price is trading in the green and tries to climb much higher as the dollar index dropped further today.
The USDX is trading in the red and is under selling pressure on the short term again. The index has found strong resistance and 93.68, much below the 93.81 static resistance and now goes down and could retest the 92.49 horizontal support before will try to climb higher again.
The Euro increased despite some poor Euro-zone data, the German Retail Sales dropped by 0.4%, even if the traders have expected to see a 0.5% growth. Moreover, the Euro-zone CPI Flash Estimate increased only by 1.5%, less versus the 1.6% estimate, while the Core CPI Flash Estimate surged only by 1.1%, less versus the 1.2% estimate.
Price failed to stabilize below the median line (ML) of the minor black ascending pitchfork and below the median line (ml) of the minor descending pitchfork. A retest of the ML will confirm a further increase in the upcoming period, the next target will be at the upper median line (uml) of the descending pitchfork.
The pair is trapped within the 1.2041 horizontal resistance and the 1.1711 static support, could move in range between these levels in the upcoming period after the failure to approach and reach the median line (ML) of the major ascending pitchfork.
USD/CHF Another False Breakout
Price failed to stay above the second warning line and now could drop deeper in the upcoming days. USD/CHF is somehow expected to drop in the upcoming days after the failure to make new highs and to jump above the 0.9771 previous high. The failure to reach and retest the upper median line (uml) of the descending pitchfork could send the rate very fast towards the median line (ml) of the descending pitchfork.
GBP/JPY Further Drop In The Cards
The GBP/JPY is trading in the red on the short term, could drop further after the false breakout above the 151.66 horizontal resistance. You can see that has come back to retest the mentioned resistance and now goes down. The first downside target will be at the 150% Fibonacci line, a breakdown below it will open the door for more declines.
By Olimpiu Tuns - Market Analyst
I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com, countingpips.com, forexalchemy.com, etc.
Trading, in general, is very risky and is not suited for everyone. There is always a chance of losing some or all of your initial investment/deposit, so do not invest money you can’t afford to lose. You are strongly advised to carry out your independent research before making any trading decisions. All the analysis, market reports posted on this site are only educational and do not constitute an investment advice or recommendation to open or close positions on international financial markets. The author is not responsible for any loss of profit or damage which may arise from transactions made based on any information on this website.
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