Daily Market Report – EUR/USD Rolling Down September 25, 2017

EUR/USD On The Way Down

The currency pair has opened with a gap down in the morning, signaling that the bears are in control on the short term. Price has come higher to close the morning gap, but has failed. EUR/USD is trading in the red right now and seems too heavy to be stopped.

Price erased the morning gains and could hit fresh new lows till the end of the day as the dollar index could breakout above the 92.49 static resistance. The dollar index moves somehow sideways on the short term, signaling a potential reversal. The behavior changed on the USDX as the rate has started to make higher lows, but we still need a confirmation that the index will really start a broader rebound, which will lead the USD much higher versus all its rivals. The Euro dropped further also because the German Ifo Business Climate decreased from 115.9 to 115.2 points, even if the estimate 116.0 points.

The price failed to close above the upper median line (uml) of the minor descending pitchfork and above the UML and now is going down again. Price also failed to retest the upper median line (uml) in the last attempt, so the bearish movement is natural.

It could be attracted by the confluence area formed between the median line (ml) with the ML of the ascending pitchfork. EUR/USD is narrowing right now, but I hope that we’ll have a significant move very soon.

Brent Oil At New Peaks

Price rallied aggressively and jumped much above the median line (ML) of the major ascending pitchfork, signaling that is strongly bullish. Has broken above the 150% Fibonacci line (descending dotted line) and above the upside line (uml) of the up channel. A retest of the broken levels will signal a further increase in the upcoming period.

Brent is almost to hit the $58.00 per barrel, it wasn’t reached since July 2015, so the price could touch new peaks in the upcoming period.

AUD/USD Imminent Breakdown

Price increased a little today, but wasn’t able to reach the 0.7985 Friday’s high. It seems undecided right now because the USDX has managed to increase a little. Could retest the lower median line (LML) again, remains to see if we’ll have a breakdown or a bounce back. A breakdown is favored if the USDX will jump and will stabilize above the 92.49 static resistance.

By Olimpiu Tuns

Market Analyst

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