EUR/GBP Drops Like A Rock
The currency seems too heavy to be stopped on the short term. Is trading in the red and resumes the bearish momentum. EUR/GBP is focusing on correction right now, so the perspective is bearish on the short term. Remains to see how long this retreat will be because is approaching some major downside obstacle.
Price has opened with a gap down in the morning, signaling that the bears are very strong on the short term. Technically, the corrective phase could be only temporary, could drop only to recapture more directional energy before will resume the upside movement.
The Euro drop versus the Cable even if the Italian Industrial Production rose by 0.1% in July, the economic indicator was expected to decrease by 0.5%. The Industrial Production remains in the positive territory for the third consecutive month, but the Euro wasn’t inspired.
Price goes down after the false breakout above the upper median line (UML) of the major ascending pitchfork and above the 0.9226 static resistance. Has managed to slip below the 50% Fibonacci line, a valid breakdown will signal a further drop towards the next downside targets.
The near term support will be at the 0.9000 psychological level, could also be attracted by the lower median line (lml) of the minor blue ascending pitchfork. Technically, is somehow expected to be attracted by the confluence area formed at the intersection between the median line (ML) with the third warning line (wl3) of the descending pitchfork and with the lower median line (lml) of the minor ascending pitchfork.
NZD/USD Pressuring Static Resistance
The NZD/USD is pressuring the 38.2% retracement level, a valid breakout will confirm an increase towards the third warning line (WL3) of the descending pitchfork. Price remains under pressure as long as is trading under the WL3, only a breakout above it will signal a further increase towards the next upside targets, from 0.7375, respectively to 0.7484 level.
USD/CHF has opened with a gap up and continues to increase on the daily chart. Looks like we had a false breakdown below the 0.9440 static support and under the lower median line (lml) of the minor descending pitchfork. A retest of the lower median line (lml) will confirm a further increase in the upcoming period, the next important upside target will be at the median line (ml) of the minor descending pitchfork.
By Olimpiu Tuns
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