EUR/USD Attention On A Break Below 1.18!
  • Vote Up0Vote Down venynxvenynx
    Posts: 4,525Member
    EUR/USD seems undecided after the US Non-Farm Payrolls data. It‘s traded
    at 1.1831 and I really believe that we’ll have a clear direction in
    two, three days. Technically, the bullish bias remains intact as long as
    the rate stays within the up channels body and above 1.18 psychological
    level.To get more news about WikiFX, you can visit wikifx official website.



      The Non-Farm Employment Change indicator was reported at 1371K, the
    Unemployment Rate dropped from 10.2% to 8.4% in August, while the
    Average Hourly Earnings rose by 0.4%, beating the 0.0% estimate.



      The USD was somehow expected to appreciate versus its rivals after the
    good economic figures. It remains to see how the USDX will react during
    the day, a further growth followed by the breakout of 93.24 could
    announce a broader upside movement and EUR/USD correction.



    image

    USDX tries to continue its rebound but is facing a tough resistance at
    the minor downtrend line, Falling Wedges resistance. Still, the index
    shows some positive signs after closing above the upside 50% Fibonacci
    line.



      Friday‘s false breakout with great separation above the minor
    downtrend line signals that the sellers are still in control. Only a
    jump and close above 93.24 Friday’s high will really confirm a short
    term reversal.



      You should be careful because another false breakout today followed by
    a drop below 92.55 static support will announce a deeper drop.

    EUR/USD stays within the minor ascending channel, so it maintains its
    bullish outlook. The price has registered only two false breakdowns with
    great separation below 1.18 psychological level signaling strong
    bullish pressure around this downside obstacle.



      Yet, the pair could still come back to pressure the 1.18 level, that‘s
    why I’ve said that the next days could be crucial. A valid breakdown
    from the up channel and below 1.18 could suggest selling, while another
    bullish momentum followed by a valid breakout above the second warning
    line (WL2) will bring a long opportunity.



      A bearish reversal will be confirmed by a drop and close below 1.17
    psychological level. Stochastic and RSI show a bearish divergence on the
    Daily chart but we need another lower low, drop below 1.1781 Fridays
    low to confirm a further drop in the short term.



      The 250% Fibonacci line represents strong dynamic support. Today, the
    greenback could take the lead again as the German Industrial Production
    indicator has increased only by 1.2% in July, less versus 4.5% estimate.

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