EUR/USD Imminent Breakout!|KOL Analysis•Olimpiu Tuns

EUR/USD edges higher and is almost to reach new highs as the USDX drops like a rock in the short term. The pair is strongly bullish and it could approach and reach 1.20 psychological level soon if the dollar index will hit new lows.

The USD is to release the Building Permits and the Housing Starts later today, but I dont believe that the indicators could save the greenback from the downside. The Building Permits could jump to 1.33M, from 1.26M, while the Housing Starts could increase from 1.19M to 1.23M in July.

● US Dollar Index Downside Breakout？

USDX moves in a range between 92.55 and the 93.81 levels, a downside valid breakout will suggest further drop towards the second sliding line (SL2) and towards the median line (ML) of the major descending pitchfork. EUR/USD will reach fresh new highs if the index will resume its sell-off.

The selling pressure remains high as long as the index is located below the upside 50% Fibonacci line of the descending pitchfork. The first sliding line (SL1) and the 92.55 are seen as critical downside obstacles, only a reversal pattern on these levels or a false breakdown with great separation will really send the index higher again.

● EUR/USD Going For Another Higher High!

As you already know from my analysis, EUR/USD is bullish and it is expected to approach and reach fresh new highs after the failure to reach and retest the 1.17 level. The 1.1910 - 1.1918 is seen as a resistance area, while the second warning line (WL2) could be used as a dynamic resistance.

Ive said in my latest analyses that another higher high, jump above 1.1918 will suggest buying and will announce a strong upside movement beyond 1.20 psychological level. The 350% Fibonacci line could be used as a potential upside target.

EUR/USD is somehow expected to take out the resistance from the WL2 after the failure to stabilize below the 250% Fibonacci line. A USDXs valid breakdown below 92.55 level, another lower low, will send EUR/USD way above 1.20 level.

● XAU/USD Back Above $2,000 Level!

Gold extends its bullish momentum and now is traded at $2,005 level, a consolidation above the $2,000 psychological level, and above the first warning line (WL1) will really confirm further growth with target at the 250% Fibonacci line or higher at $2,073 all-time high.

The false breakdown with great separation below $1,900 level and the failure to close below the 150% Fibonacci line has confirmed that the correction has ended and that the rate could come back higher.

You should know that a valid breakout above the 250% Fibonacci line will announce new historical highs, the second warning line (WL2) is seen as a potential upside target, obstacle. Though, a false breakout above the first warning line (WL1) and above $2,000 psychological level followed by several retests could announce another short term decline.

{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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