EUR/USD poised for further gains?
Price decreased a little in the morning as the USDX has managed to increase a little in the morning, the index is struggling to stay above the 93.17 previous low. USDX is under massive selling pressure on the Daily chart and could drop further because we don’t have any reversal sign right now.
The greenback will lose more ground versus its rivals if the USDX will slip towards the 92.49 major static support, a drop towards this level is favored because I don’t believe that the US data will impress in the upcoming period.
The Euro may resume the upside movement if the Euro-zone data will come in better than expected, the German Retail Sales have increased by 1.1%, more versus the 0.1% estimate and compared to the 0.5% growth in the former reading period. We’ll see how the EUR/USD will react when the Euro-zone CPI Flash Estimate will be released, the indicator should increase by 1.3% in July, while the Core CPI Flash Estimate may increase by 1.1%, like in the former reading period. The Unemployment Rate will be released as well and could decrease from 9.3% to 9.2%.
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Price is testing the broken dynamic resistance (wl7) and should retest also the 1.1711 static support (resistance has turned into support) as well. We may have a buying opportunity if the rate will consolidate above these levels, but I want to remind you that a failure to reach the upper median line (uml) of the ascending pitchfork will send the rate towards the median line (ml).
EUR/USD maintains a bullish perspective on the short term, so only a false breakout above the warning line (wl7) and above the 1.1711 level will signal another leg lower.
GBP/USD losing direction
Is still trapped within an ascending channel, but has failed once again to reach the 150% Fibonacci line (ascending dotted line) and the upside line of this chart pattern. GBP/USD is bullish on the short term and should climb much higher after the breakout above the upper median line (UML), has retested this level.
Maybe the rate needs to recapture more directional energy before will jump much higher on the short term, so we may see a minor consolidation in the upcoming days. We may have a buying opportunity if will come to retest the warning line (wl1) of the minor ascending pitchfork.
EUR/CHF upside stopped by confluence area
EUR/CHF has found strong resistance at the confluence area formed between the second warning line (WL2) with the warning line (wl1) of the minor ascending pitchfork. A retreat was favored after the impressive rally, so he could come back towards the upper median line (uml) of the minor ascending pitchfork.
By Olimpiu Tuns
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