EUR/USD Near Critical Resistance!|KOL Analysis•Olimpiu Tuns

EUR/USD has developed a bearish engulfing reversal pattern, but the pair is still under bullish pressure, so a potential correction is far from being confirmed. The pair is traded at 1.1769 level, above 1.1696 yesterdays low.

The price has decreased a little as the USDX has managed to rebound in the short term, you should keep in mind that the index is located deep in the sellers territory, so it could drop anytime again.

The greenback has increased a little versus its rivals also because the US ISM Manufacturing PMI has increased from 52.6 points to 54.2 points, beating the 53.6 estimates. The US is to release the Factory Orders later today, the indicator is expected to increase by 5.1%, versus a 8.0% growth in the former reading period.

● USDX Still Under Pressure!

The US Dollar Index has managed to recover, but the selling pressure remains high as it‘s traded below the 93.81 and below the 50% Fibonacci line. The index has developed a major bullish engulfing pattern, yesterday’s bullish candle has confirmed this pattern, but the USDX could come back down to retest the inside sliding line (SL1) before going higher.

I believe that a valid breakout above the 50% line and above the 93.81 will signal a larger upside movement towards the upper median line (UML), this scenario will bring a correction on EUR/USD.

Another drop on the USDX will send EUR/USD towards new highs in the short term, you can use the strong negative correlation between these two instruments in trading.

● EUR/USD Trading In The Green!

EUR/USD has decreased as much as 1.1696 in yesterdays trading session, it has closed the day at 1.1763 level signaling that the bulls are still in the game. The false breakdown below the 1.17 could send the rate higher again.

The pair is trading in the green today and most likely it will challenge the 1.18 psychological level and the 250% Fibonacci line. Ive said yesterday that we may have a strong downside movement if EUR/USD will be rejected again by the near term resistance levels or it it will register another false breakout with great separation above these obstacles.

As you know from my analysis, EUR/USD is still bullish as long as it stays above the 1.17 level, and above the first warning line (WL1). A minor drop is natural after the impressive rally, a broader corrective phase could be confirmed only from below the 1.1494 static support.

EUR/USD is bullish despite the bearish engulfing pattern, the reversal formation could be invalidated if the rate will make a valid breakout above the 1.1800 level and above the 250% Fibonacci line.

Another lower low, drop below the 1.1696 will suggest selling with potential downside targets at the warning line (WL1) and lower at the 1.1494 level. On the other hand, EUR/USD will climb way higher if it jumps and stabilizes above the 1.18 level, the second warning line (WL2) is seen as a potential upside target, obstacle.

● AUDUSD Bullish Post RBA!

AUD/USD has increased today as the RBA has kept the Cash Rate unchanged, at 0.25%, while the Australian Retail Sales have increased by 2.7% in June, beating the 2.4% estimates.

The pair has shown some exhaustion signs on the Daily chart after the failure to reach and retest the former uptrend line, up channels support. The outlook is still bullish as long as it stays above the 0.7063 static support, only a drop below this obstacle will suggest selling in the short term.

A further upside movement will e confirmed by a valid breakout above the upper median line (UML) of the minor descending pitchfork.

{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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