Could Buyers Take USD Higher?|KOL Analysis•Olimpiu Tuns

The USD has rebounded in the short term versus all its major rivals as the US Dollar Index has bounced back from 92.13 low. The index has printed a bearish engulfing pattern on the Daily chart, but it is still premature to talk about a reversal as long as the USDX is traded below 93.81 level.

The greenback has rallied even if the FOMC Meeting Minutes was dovish confirming again that the FED is concerned about the United States economic recovery. Maybe the event was already priced in and the USDs rebound was only a temporary reaction before fruther drops.

l USDX Up Reversal？

USDX continues to stay above the first sliding line (SL1) of the descending pitchfork signaling once again that the downside movement could be over and that we may have another leg higher.

Still, the selling pressure is high as long as it stays below the upside 50% Fibonacci line and below 93.81 level, static resistance. So, only a valid breakout above 93.81, another higher high, will validate and confirm a reversal.

USDX has registered a false breakdown below 92.55 and below the SL1, the bullish engulfing pattern could be confirmed by a strong bullish candle today. The pattern could be invalidated by a drop below 92.55 static support.

l EUR/USD Reversal or Temporary Drop？

EUR/USD registered an amazing drop in yesterdays session, it has begun to decline a few hours earlier before the FOMC Meeting Minutes release. The pair was rejected by the second warning line (WL2) of the former descending pitchfork.

I‘ve said yesterday that EUR/USD has reached another upside target and that it could jump higher after making another higher high. Though, yesterday’s development, strong bearish candle, could change the sentiment in the short term.

The bearish engulfing reversal pattern signal reversal, but EUR/USD is still bullish as long as it stays above 1.18 and most important above 1.17 psychological level. The aggressive drop has invalidated the breakout above 1.1909 former high.

A potential corrective phase could be invalidated by a false breakdown below 1.18 psychological level, the price could only come down to test and retest the 1.1800 level and the 250% Fibonacci line before going higher, above the WL2.

We may have a selling opportunity if EUR/USD will drop and close below 1.17 level, while a long opportunity could be confirmed by a valid breakout above the second warning line (WL2).

l XAUUSD Demolished By USDs Rally!

Gold plunged in yesterdays session as the USD appreciated versus its rivals ahead and after the FOMC Meeting Minutes report. The price has found temporary support at the 150% Fibonacci line again.

The failure to close and stabilize above $2,000 psychological level has signaled strong bearish pressure. The upside is safe as long as the rate is traded above the 150% line, above the $1,900 level, and above the upper median line (UML) of the ascending pitchfork. I believe that only another lower low, drop below $1,864 will suggest selling on the short to the medium term.

A valid breakout above the first warning line (WL1) and above the $2,000 level will suggest buying as the rate will be expected to climb towards new historical highs.

{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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