Daily Market Report – EUR/GBP found temporary resistance July 24, 2017

EUR/GBP still bullish

The EUR/GBP drops a little after the impressive rally, but maintains a bullish bias despite the minor correction. Is trading near 0.8930 level, much below the 0.8993 yesterday’s high, the Euro lost significant ground versus its rivals as the Euro-zone data have disappointed in the morning.

The Euro-zone Flash Services PMI remains steady at the 55.4, but has come below the 55.5 estimate, while the Flash Manufacturing PMI decreased from 57.4 points to 56.8 points in July, even if the estimate was 57.3 points.

Moreover the German Flash Services PMI decreased from 54.0 points to 53.5 points in July, even if the traders have expected to see an increase to 54.4 points, while the Flash Manufacturing PMI plunged from 59.6 to 58.3, much below the 59.1 estimate, signalling that the expansion has slowed down aggressively.

French Flash Services PMI was reported at 55.9 points, much below the 56.6 estimate and below the 56.9 in the former reading period, has received support from Flash Manufacturing PMI, which has increased from 54.8 to 55.4 points, beating the 54.6 estimate.

Price is trading in the red and retreats after the upside momentum, but don’t worry because the perspective remains bullish on the Daily chart after the valid breakout from the extended sideways movement and above the warning line (wl2).

The next upside target will be at the 50% Fibonacci line (ascending dotted line), could also be attracted by the upper median line (UML) of the major ascending pitchfork and by the third warning line (wl3) in the upcoming period.

Technically, should increase further as long as is located above the median line (ML) of the major ascending pitchfork, could approach the 0.9226 major static resistance, where he could find strong resistance again.

USD/CAD losing momentum

USD/CAD dropped a little today because is still under massive selling pressure, but most likely will find a strong support in the upcoming days and will start a rebound. Technically, we should have a bounce back on the short term after the massive drop.

Price extends the sell-off as the USDX could slide further, could approach and reach the 1.2460 major static support, where he may find strong support again. A failure to reach the lower median line (lml) will signal an oversold, this situation will send the rate much higher in the upcoming period.

NZD/USD much below the 0.7484 swing high

NZD/USD stays higher and could hit new highs in the upcoming days if the USDX will stabilize below the 94.00 psychological level. Price rallied aggressively in the last days and jumped above the 0.7375 obstacle, the next upside target is at the 0.7484 swing high. Maintains a bullish perspective as long as is located above the fourth warning line (WL4), could come down to retest the broken resistance (resistance turned into support) before will climb much higher.

By Olimpiu Tuns

Market Analyst

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