EUR/USD Bullish Ahead The Flash Services PMI and Manufacturing Data!|KOL Analysis•Olimpiu Tuns

EUR/USD is trading in the green after the rejection from above 1.18 level, a USDX‘s further drop will push the pair higher sooner than we thought. Wednesday’s bearish engulfing pattern was invalidated, for now, only a drop below 1.18 psychological level could activate this reversal pattern.

Nevertheless, the economic calendar is filled with high impact data, the Euro-zone Flash Services PMI could drop from 54.7 to 54.6 points signaling the expansion slowdown, in the meantime, the Flash Manufacturing PMI is expected to jump from 51.8 to 52.7 announcing expansion in this sector.

The German Flash Services PMI could decrease as well in August, from 55.6 points to 55.3 points, while the Flash Manufacturing PMI could resume its continuous growth, the indicator is expected around 52.2 points, higher versus 51.0 in July.

The greenback needs strong support from the US economy to be able to strike back versus its rivals, the Flash Services PMI indicator could climb to 50.9 points confirming expansion, at the same time, the Flash Manufacturing PMI could report significant growth from 50.9 to 51.9 points.

● EUR/USD Bulls In Control!

EUR/USD has decreased after making another top at 1.1967 level, Wednesday‘s aggressive drop suggested a reversal pattern, but yesterday’s rebound at 1.1802 has clouded the downside perspective.

I‘ve said in yesterday’s analysis that, EUR/USD will remain bullish as long as the rate stands above 1.18 level. A corrective phase will be validated below 1.17 psychological level, EUR/USD is traded far above this downside obstacle at the moment.

Better than expected Euro-zone data and poor US figures today will send the pair above the second warning line (WL2) and will suggest buying again. On the other hand, poor Euro-zone numbers and good US data could bring sellers into the game again.

We may have a buying opportunity if the rate will jump and close above the second warning line (WL2), this scenario will announce further growth to the 350% Fibonacci line, far above 1.20 psychological level.

The bearish engulfing pattern could be activated again if the rate will slip below 1.18 and below the 250% Fibonacci line, if you want to sell EUR/USD, you should wait for a valid breakdown below 1.17 level.

● GBP/USD Trading In The Green!

GBP/USD rallies and it‘s almost to jump above 1.3269 weeks high, the pair has retested the 78.6% (1.3062) level confirming once again the upside perspectives. As you already know from my analysis, GBP/USD will remain bullish, it should jump higher, as long as it’s traded above the median line (ML) of the major ascending pitchfork.

Another higher high will suggest buying with a first potential upside target at 100% (1.3513) level, the 50% Fibonacci line could attract the rate as well. You should keep an eye on the economic calendar today, the UKs manufacturing and services sectors could extend the expansion which will lead to a stronger Pound.

{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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