USD Loses Ground Again!|KOL Analysis•Olimpiu Tuns

The USD is melting down in the short term as the US Dollar Index has failed to confirm its reversal. USDX was rejected by the near-term upside obstacles, a further drop will bring USDs depreciation versus its rivals.

Unfortunately, the US better than expected inflation data failed to boost the USD, actually, the greenback has dropped after the CPI and the Core CPI indicators were released. The CPI rose by 0.6% versus 0.3% estimate, while the Core CPI increased by 0.6%, beating the 0.2% forecast.

The US Unemployment Claims data will be released later today, the indicator could be reported around 1120K in the previous week, better versus the 1186K in the former reading period, but I dont believe that it will have enough power to save the USD from the downside.

● USDX Still In The Sellers Territory!

USDX has found strong resistance at 93.81 level again and now it drops like a rock. It is traded at 93.14, the critical support is at 92.55 level and at the first sliding line (SL1). It remains to see if the current sideways movement will be an accumulation or a distribution.

As I‘ve said in my analyses, USDX will remain under selling pressure as long as it’s traded below the 93.81 and below the 50% Fibonacci line. Technically, only a valid breakout above the 93.81 level and another higher high will signal, validate, a broader rebound, upside movement.

Another lower low, a drop, and close below the 92.55 will suggest further drop towards the second sliding line (SL2) and towards the median line (ML) of the descending pitchfork.

● EUR/USD Edges Higher!

EUR/USD is trading in the green and extends yesterday‘s bullish candle. It’s traded at 1.1833 level and it seems determined to resume the upwards movement if the USDX will reach new lows.

You know from my analysis that, EUR/USD will invalidate a significant drop, corrective phase if the price will register a valid breakout above the 1.18 and above the 250% Fibonacci line in the end.

Only a valid breakdown below the 1.17 would have confirmed a larger drop in the short term, down to 1.1494 level. This scenario could be invalidated today if EUR/USD will close way above the 1.18 level.

The second warning line (WL2) remains a potential upside target if the rate will extend its bullish momentum. Another higher high, a jump above 1.1917 level, and a valid breakout above the warning line (WL2) will suggest buying and will validate a leg higher far above the 1.2000 psychological level.

● AUD/USD Upside Favored!

AUD/USD remains bullish as longa s it‘s traded above 0.7063 static support. It has decreased a little from 0.7188 today’s high, even if the Australian data have come in better than expected earlier.

The Australian Unemployment Rate was reported at 7.5%, less versus 7.8% estimate, while the Employment Change indicator was reported at 114.7K, better compared to the 30.0K estimate. Maybe the Aussie has slipped lower because Julys figures are worse compared to June.

A drop below 0.7063 will validate further decline towards the median line (ML) and towards the 23.6% (0.6823) level, while a valid breakout above the upper median line (UML) of the descending pitchfork will confirm further growth, a rally towards new highs. Technically, if AUD/USD will fail to approach and reach the median line (ML), further upside movement is expected.

{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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