EUR/USD Reached Another Upside Target! What Now?| KOL Analysis•Olimpiu Tuns

EUR/USD has opened with a gap down today and now is trading in the red. The price is traded at 1.1761 level, far below 1.1807 yesterday‘s high. The perspective is still bullish despite today’s drop, the pair is expected to try to close the current gap and to pressure the 1.1800 psychological level.

EUR/USD has decreased a little only because the USDX has recovered today. The US Dollar continues to be under massive selling pressure, so the rebound could be temporary. The dollar has continued to drop after the FOMC Meeting, the FED has maintained the monetary policy unchanged, reiterating that they could use the full range of tools to support the US economy to recover after the current health crisis.

The US Pending Home Sales rose by 16.6% in June, beating the 15.6% estimate, the Prelim Wholesale Inventories, and the Goods Trade Balance have come in better than expected as well, but unfortunately, the USD wasnt impressed.

The United States Advance GDP will be released today, the indicator could register a 34.5% drop, while the Advance GDP Price Index could increase by 0.0%. Unfortunately, the Unemployment Claims could increase again, from 1416K to 1440K in the previous week, this is not great news for the greenback.

● EUR/USD Rejected By Strong Obstacle!

EUR/USD has reached the 1.1800 level and the 250% Fibonacci line as expected and now has decreased a little. The bias is bullish, so a minor drop could not affect the upside movement.

Actually, a minor decline could be natural after the impressive rally, EUR/USD could slip lower if the US Dollar Index will increase in the upcoming days. The aggressive breakout above the warning line (WL1) and above the 1.17 level have confirmed growth at least till the 1.18 level.

I‘ve said in yesterday’s article, analysis, that EUR/USD could be attracted by the 250% Fibonacci line if the USDX will hit new lows. The current drop could help us to go long again, EUR/USD stays bullish as long as the rate is traded above the warning line (WL1) and above the 1.1495 static support (resistance has turned into support).

The upwards movement will resume if EUR/USD will close the gap down, and if it will make a valid breakout above the 1.1800 level and above the 250% Fibonacci line. Another higher high will bring a buying opportunity as the pair will try to approach and reach the second warning line (WL2) of the former descending pitchfork.

The USDX is bearish, so EUR/USD is bullish, is understandable why we cannot talk about a selling opportunity on EUR/USD yet. Only a reversal on the US Dollar Index or a major reversal pattern on this pair will suggest selling, we are not there at this moment.

● EUR/USD Bearish Divergence On The H4 Chart!

EUR/USD has failed to close above the 1.1782 high according to the H4 chart, it has developed a bearish divergence, but only a valid breakdown below the 1.1700 level will activate an important drop in the short term.

I‘ve drawn a minor descending pitchfork hoping that I’ll catch a downside momentum, EUR/USD could drop deeper as long as it stays within the pitchforks body, below the upper median line (uml).

EUR/USD is trapped between the 1.17 and 1.18 levels, a valid breakout in any direction will bring a trading opportunity, but you should keep in mind that we may have only a temporary decline, correction, the pair could climb higher anytime again. A valid breakout above 1.18 will validate a further upside movement.

{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.

WikiFX, a third-party forex broker inquiry platform, has collected

the information of 19,000+ forex brokers, 30 regulators, and helped

victims recover over 300,000,000.00 USD. WikiFX App provides functions

like forex brokers inquiry, calender, forex news express, calculator and

other trading tools to help you get trading done with ease.

Forex brokers inquiry: in order to create a safe forex trading

environment, WikiFX offers you two methods of checking the compliance of

forex brokers, online checking and offline investigation report. WikiFX

has an independent inspection team, conducting on-spot visit to brokers

offices to identify they are trustworthy or not.

Forex calender: the financial events which may affect forex trading

Forex news express: providing you the latest info anytime and anywhere

Forex forum: tons of posts by WikiFX users, containing technical

analysis, industry discussion, fraud brokers exposure; Users can

exchange their thoughts here freely.