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

EUR/USD edged higher in yesterdays session reaching new highs at 1.1967 level as the USDX has ignored the 92.55 static support level. The Dollar has continued to drop even if the US Building Permits and Housing Starts data have come in better than expected.

The pair is strongly bullish, good Euro-zone data today could attract more buyers. The Current Account could be reported at 7.0B, below 8.0B in the previous reading period, the Final CPI is expected to register a 0.4% growth, while the Final Core CPI could increase by 1.2%.

● EUR/USD At Resistance!

EUR/USD is traded right below the second warning line (WL2) of the former descending pitchfork, a valid breakout will validate further growth in the upcoming period. The price has changed little today, but you should keep in mind that the pair could jump higher anytime again after making another higher high at 1.1967.

Technically, the pair is expected to resume the upwards movement after yesterdays upside breakout from the minor range, above 1.1910 level. As you already know from my latest articles, EUR/USD should approach and reach the 1.20 psychological level soon.

A valid breakout above the WL2 will signal further growth towards the 350% Fibonacci line, way above 1.20 level. EUR/USD may register a minor drop only if the rate will fail to close above the second warning line (WL2) and if the USDX will rebound.

● USDX Deep In The Sellers Territory!

The US Dollar Index extended its downside movement, a deeper drop is favored if the rate stays below the first sliding line (SL1) and below the 92.55 broken static support. A further decline will push EUR/USD towards fresh new highs.

USDXs next downside target stands at the second sliding parallel line (SL2) or at the median line (ML) of the major descending pitchfork. I believe that only a failure to reach the next immediate downside targets will announce that the sell-off is finished and that the index could give birth to another leg higher.

● GBP/USD Rallies As Expected!

GBP/USD has climbed as much as 1.3268 level today and most likely it will hit new records in the short term after yesterdays confirmation. The breakout above 1.3187 former high has validated further growth in the upcoming period. The 100% (1.3513) level and the upside 50% Fibonacci line could be used as potential upside targets.

The Pound received strong support earlier from the UKs inflation data, the CPI rose by 1.0%, beating the 0.6% estimate, while the Core CPI increased by 1.8% in July, more versus 1.3% expectations.

Ive said in my previous analyses that GBP/USD should climb way higher if it stays above the 78.6% (1.3062) retracement level and above the median line (ML) of the major ascending pitchfork. The failure to retest the median line (ML) has suggested strong bullish momentum.

● USD/JPY Challenging A Dynamic Support!

USD/JPY has rebounded today trying to close the gap down. The price has found support right on the median line (ML) of the descending pitchfork, the outlook is still bearish as long as the rate is traded below the upside 50% Fibonacci line.

It remains to see how the USD will react tonight after the FOMC Meeting Minutes report release, some dovish aspects could weaken the greenback. USD/JPY could come back higher if the USDX will increase again.

Technically, the pair will resume its bearish momentum if it closes below the median line (ML). Personally, I believe that only a strong rally, followed by a valid breakout from this descending pitchfork, above the upper median line (UML) will really suggest buying again.

{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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