EUR/USD Little Changed
The currency pair reached new highs in the early morning, but failed to stay above the 1.1824 yesterday’s high and now is trading in the red again. Price has reached a dynamic resistance in the yesterday’s session and now could retreat a little to test and retest a dynamic support (resistance turned into support).
However, the rate could increase further if the USDX will slip lower in the upcoming hours. The USDX dropped sharply in the yesterday’s session and reached the 93.15 level, but stays above a minor dynamic support, which could send the rate higher again.
The USDX retreated on the short term after the false breakout above the 93.81 static resistance. We’ll see what will happen tonight as the FOMC Minutes will shake the markets, this could be a crucial day for the USD.
EUR/USD rallied in the previous session and reached the median line (ml) of the minor ascending pitchfork where has found temporary resistance. Price decreased a little in the last hours, but is could still increase to approach and reach the upper median line (uml) of the minor descending pitchfork. Could increase along the median line (ml) of the ascending pitchfork and could be attracted by the confluence area formed between the median line (ml) with the upper median line (uml) of the minor descending pitchfork.
Price maintains a bearish perspective on the short term as long as is trading within the descending pitchfork’s body, could still develop a Head and Shoulders pattern as long as will stay below the upper median line (uml).
GBP/USD Retest The Buyers
The GBP/USD comes down to retest the broken outside sliding line (SL) of the descending pitchfork. Could retest also the confluence area formed between the Sl with the 250% Fibonacci line (ascending dotted line) before will climb much higher.
I’ve said in the last weeks that the perspective remains bullish as long as the rate stays above the 250% Fibonacci line (ascending pitchfork).
USD/CHF In The Sellers Territory
USD/CHF increased in the morning and tries to recover after the yesterday’s massive drop. Price is pressuring the upper median line (uml) UML of the descending pitchfork, but could drop much deeper to retest the WL2.
Technically, it should drop much deeper in the upcoming period after the false breakout above the median line (ml) of the minor ascending pitchfork, above the 0.9787 horizontal resistance and above the outside sliding line (SL).
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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