Daily Market Report – EUR/USD eyeing a crucial break August 15, 2017

EUR/USD Looks Exhausted

The EUR/USD is trading in the red and extends the yesterday’s sell-off as the USDX looks determined to take out the 93.81 static resistance. The pair drops after the failure to retest a dynamic resistance, but we need a confirmation that will start another leg lower. The current drop could be only temporary if the US data will disappoint later.

Is trading above a critical support, only a valid breakdown will confirm a further drop in the upcoming period. Right now it is consolidating and waits for the US data to come out. You should be careful in the afternoon because we may have a high volatility.

The United States Retail Sales could increase by 0.3% in the previous month, the indicator could jump in the positive territory after 3-months, while the Core Retail Sales may increase by 0.3% in July versus the 0.2% drop in June.

The Import Prices could increase by 0.1% in June versus the 0.2% drop in the former reading period, while the Empire State Manufacturing Index could jump from 9.8 to 10.1 points.

Price is going down after failure to retest the upper median line (uml) of the minor ascending pitchfork, signaling that the bears are in control. Was almost to reach and retest the 1.1712 major support (resistance turned into support). Technically is expected now to approach and reach the median line (ml) of the minor ascending pitchfork. We have a major downside obstacle also at the median line (ML) of the major ascending pitchfork, the perspective is still bullish as long as the mentioned support levels are intact.

NZD/USD Breakdown Needs Confirmation

Price managed to drop below the fourth warning line (wl4) again and now is challenging the 38.2% retracement level, a valid drop below this obstacle if all what we need to know for sure that will drop further. Technically should drop further, having the next major target at the fifth warning line (wl5), will approach this level if will ignore the support from 50% and 61.8% retracement levels. Could be attracted by the confluence formed by the wl5 with the WL2.

EUR/GBP Breakout In Play

EUR/GBP is strongly bullish and has managed to jump above the third warning line (wl3). A valid breakout will attract more buyers, which will drive the rate towards the upper median line (UML) and towards the 0.9226 horizontal resistance. I’ve said in the previous analysis that price should take out the dynamic resistance because is attracted by the confluence area formed between the 0.9226 with the UML.

By Olimpiu Tuns

Market Analyst

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