Daily Market Report – EUR/USD Turned To The Downside August 31, 2017

EUR/USD Losing Altitude

The price is trading in the red at this moment and could drop much deeper in the upcoming days if the dollar index will have more directional energy to resume the upside movement. EUR/USD turned to the downside after a false breakout, but we still need a confirmation that will start a broader drop on the Daily chart. The perspective is still bullish despite the minor drop as the rate is located above some important support levels.

Technically, has shown some exhaustion signs on Tuesday, but personally, I would like to see a resistance retest before the rate will move towards new lows.

You should be careful in the upcoming hours as the Euro-zone and the US are to release high impact data, the fundamental factors will take the lead, but remains to see the direction.

EUR/USD changed little today as the dollar index has posted little gains, but I hope that the Euro-zone and US data will bring life on it. Price has plunged below the upper median line (uml) of the ascending pitchfork in the yesterday’s session.

I would like if will come back to retest the upper median line (uml) before will move towards the median line (ml) of the ascending pitchfork.

Technically is expected to drop after the false breakout above the 50% Fibonacci line and above the sliding line (sl), but the outlook is bullish on the daily chart as long as is trading within the minor ascending pitchfork’s body.

USD/JPY In The Buyers Territory

USD/JPY rallied and extended the upside movement, a retest of the warning line (wl1) will confirm a further increase. Continues to move in range on the daily chart, we’ll have a clear direction once we’ll have a valid breakout from this extended sideways movement.

The next upside target will be at the confluence area formed between the 38.2% retracement level with the WL3

USD/CHF Registered An Amazing Jump

Price is moving in a range on the Daily chart, but looks like that is poised for an upside move. The Tuesday’s candle suggests a reversal, but we still need confirmation before we can take action again. Only a valid breakout above the 0.9634 and most important above the median line (ml) will confirm a further increase towards the upper median line (uml).

By Olimpiu Tuns

Market Analyst

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