EUR/USD Seems Unstoppable! | KOL Analysis•Olimpiu Tuns

EUR/USD has increased as much as 1.1724 today and it seems determined to reach new highs after ignoring the near-term resistance levels. It is pressuring the 1.1700 psychological level and most likely it will take out this static resistance if the USDX will touch new lows in the short term.

EUR/USD edges higher as the German and the Eurozone Flash Services PMI and the Flash Manufacturing PMI data have come in better than expected on Friday, on the other hand, the greenback stays in the negative territory as the US Flash Manufacturing PMI and the Flash Services PMI figures have disappointed, the indicators have increased less compared to the specialists expectations.

The USD is into strong corrective phase, it depreciates versus all its rivals, only some positive numbers from the US could pause the aggressive drop. The United States Durable Goods Orders could increase by 7.0%, while the Core Durable Goods Orders is expected to grow by 3.5% in June.

● USDX Trading In The Red!

The USDX is almost to reach the 93.81 static support, a valid breakdown below this downside obstacle will open the door for a larger drop. The index has ignored the 94.95 static support and the 50% Fibonacci line of the descending pitchfork, so the current drop is natural.

The Stochastic indicator is located deep in the oversold territory, but you should know that a valid breakdown below the 93.81 level will signal a potential drop towards the median line (ML) of the major descending pitchfork. A USDXs further drop will push EUR/USD higher, while a potential rebound on the US Dollar Index will force the pair to decline in the short term.

● EUR/USD Edges Higher!

EUR/USD is pressuring the 1.17 level, a valid breakout, stabilization, above it will validate further growth towards the 1.18 psychological level and towards the 250% Fibonacci line. The aggressive breakout above the 1.1495 level and above the first warning line (WL1) confirmed strong momentum and strong buyers, so a broader upside movement is natural.

We may have a minor drop in the short term only if EUR/USD will make a false breakout above the 1.1700 level, this scenario could signal a decline towards the warning line (WL1), the quote could try to come back to test and retest this dynamic support (resistance has turned into support) before moving higher. Still, this scenario is less likely to happen as the USDX is under massive pressure.

● EUR/USD Above 1.17 Psychological Level!

As you can see, EUR/USD has managed to close above the 1.1700 psychological level and now it tries to resume its bullish momentum. A minor consolidation here will bring a potentially bullish signal, the next target is seen at the 250% Fibonacci line and at the 1.18 level.

A valid breakout above the near-term resistance levels, upside obstacles will validate a major upside movement. Actually, the breakout above the 1.1495 has signaled an important swing higher in the medium to the long term.

{About the Author}

Olimpiu Tuns is a seasoned market analyst / trader / trainer on the financial markets with expertise in forex, cryptocurrencies, commodities, futures, options, index, CFD for more than 8 years. He is also a famous blogger in both technical and fundamental analysis, trading signals, trade setups, etc.

He has worked as a Market Analyst / Consultant for three major Brokerage companies, Admiral Markets, MultiBank Exchange Group and InstaForex (live webinars, market analysis, educational materials, video analysis, video tutorials, ghostwriting, content creator), as a Social Media Manager and as a Financial Markets & Crypto Analyst / Contributor for very important news portals/blogs (investing.com, benzinga.com, forexalchemy.com actionforex.com, countingpips.com), websites, educational platforms (Forex.Academy, Forex.Today), independent clients, etc.

Olimpiu Tuns currently works as a Financial Markets & Crypto Analyst / Signal Provider / Trader / Trainer.

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