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Daily Market Report – strong Euro dominates the currency market August 01, 2017

By Mexgroup.com

EUR/USD jumped above another upside target

Price rallied aggressively in the yesterday’s session and has managed to climb above another upside target. The breakout needs confirmation because this could be a false breakout if the dollar index will find strong support and will bounce back.

EUR/USD is trading in the red right now as the USD is trying to recover after the yesterday’s massive sell-off. The greenback dropped further on the mixed United States data, has taken a hit from the Chicago PMI, which has decreased more than expected.

The minor decrease could be only temporary if the Euro-zone data will come in better later, the economic calendar is filled with high impact data. Price will be driven by the fundamental factors again, so remains to see the direction.

01EURUSD

Price is testing the broken upper median line (uml) of the minor ascending pitchfork, will increase further if will manage to stabilize above this dynamic resistance. Only a false breakout above the upper median line (uml) will signal an exhaustion  and a potential minor decrease.

Has jumped much above the 1.1712 long term static resistance, personally I’m still expecting to see a retest of this broken obstacle. We may have a buying opportunity if the rate will consolidate above this level.

The next upside target will be at the 50% Fibonacci line (ascending dotted line) of the major ascending pitchfork, it will reach this level if the United States data will disappoint again in the afternoon. You should be careful today because we may have a high volatility caused by the US reports.

The greenback needs a strong bullish spark to be able to shine again, it will turn to the upside if the US data will impress in the US session.

EUR/JPY in the buyer’s territory

01EURCHF

Price increased in the last two days and looks determined to reach the 130.76 previous high, it could climb much higher as long as is trading above the median line (ml) of the ascending pitchfork and above the upper median line (UML). Has retested the mentioned levels and now should climb higher, a further increase will be confirmed if will close above the previous high. The next upside target will be at the 150% retracement level.

Gold looks to trade higher

01Gold

The Yellow metal increased significantly in the last days and aims the 1282 level in the upcoming days. Should climb further as the USDX is under selling pressure and could slip lower to reach the 92.49 long term static support. Moves in range, but maintains a bullish perspective, is targeting the 23.6% retracement level and the $1295 per ounce.

By Olimpiu Tuns

Market Analyst

Risk Disclaimer:

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 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 web site.

The post Daily Market Report – strong Euro dominates the currency market August 01, 2017 appeared first on mexgroupblog.

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About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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