EUR/USD Changed Little
The EUR/USD has decreased a little in the morning as the USDX has managed to rebound. The currency pair maintains a bullish perspective on the daily chart, but we may have a minor consolidation before will resume the upside movement. Needs to recapture more directional energy to be able to climb above the 1.1909 previous high.
USD has dragged the pair lower, but this could be only temporary as the dollar index is expected to drop deeper on the short term. The USDX stays above the 93.00 psychological level above the 92.94 previous low, a drop towards the 92.55 swing low is possible if will close below these levels.
The German ZEW Economic Sentiment will be released later and is forecasted to decrease from 17.5 to 14.8 points, while the Euro-zone ZEW Economic Sentiment could decrease from 35.6 to 34.2 points. On the other hand, is to release the HPI and the Richmond Manufacturing Index in the afternoon.
Price decreased a little, but is somehow expected to resume the upside movement. Has found strong support at the 1.1712 downside obstacle and now could move in range before will start another significant move. Only a failure to close above the 1.1909 will signal an exhaustion and a potential reversal on the short term. However, a retest of the median line (ml) will signal a further increase in the upcoming period, the next major upside target will be at the 1.2037 level.
GBP/JPY Downside Paused
Price increased a little and is trying to retest the median line (ml) of the minor descending pitchfork. The next downside target remains at the first warning line (WL1) of the major ascending pitchfork. Only a failure to retest this level will signal a rebound towards the 150% Fibonacci line (ascending dotted line). However, a breakdown will confirm a major drop, but is premature to say what will happen because Nikkei has opened with a gap up in the morning and is fighting hard to recover after the yesterday’s massive drop.
NZD/USD Head and Shoulders?
Price drops right now after the retest of the fourth warning line (wl4) of the former ascending pitchfork. Technically is expected to drop on the short term, at least till will hit the 38.2% retracement level. NZD/USD is developing a Head and Shoulders pattern on the Daily chart, will be confirmed after a valid breakdown below the Neckline (red line).
By Olimpiu Tuns
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