Is USD Finally Poised To Bounce?|KOL Analysis•Olimpiu Tuns

EUR/USD is traded near 1.18 psychological level after Fridays aggressive drop. The dollar has taken the lead in the short term as the USDX has managed to rebound and to test the sellers.

USD rallied as the US Flash Manufacturing PMI surged to 53.6 points, beating the 51.9 estimates, while the Flash Services PMI jumped from 50.0 to 54.8 points signaling strong expansion. Existing Home Sales indicator produced a big surprise as well after increasing from 4.70M to 5.86M in July, exceeding the 5.40M estimate.

Fundamentally, the USD is somehow expected to resume its current appreciation, the USDX has printed another reversal pattern on the Daily chart. Still, a potential reversal needs confirmation.

● USDX Bullish Engulfing Pattern!

The US Dollar Index has failed once again to stabilize below the first sliding line (SL1) of the major descending pitchfork signaling that the rate is too oversold to continue its downside journey.

It has developed a bullish engulfing pattern right on 92.55 static support and now is pressuring the 50% Fibonacci line. A valid breakout above the 93.81 level will signal an important leg higher and will announce the EUR/USD corrective phase.

Yet, the pressure is high as long as the index stands below the 50% Fibonacci line. The 92.55 level is seen as critical support, a drop below this downside obstacle will suggest further decline towards 90.50 - 90.00 area.

● EUR/USD Downside Unconfirmed!

EUR/USD seems undecided around 1.18 level, the rate was rejected by the second warning line (WL2) but the outlook will remain bullish as long as it stays above the 1.18 and above the 250% Fibonacci line.

Technically, only a drop below 1.17 psychological level will really validate a corrective phase, downside movement. EUR/USD is traded far above this critical support level, thats why is premature to talk about a potential reversal.

EUR/USD shows a bearish divergence on the Daily chart but this signal is not enough for us as the pair could jump higher anytime again if the USDX will drop deeper. We may have a great selling opportunity from below 1.17 level with potential targets at 1.1494 and lower at 1.12 level.

EUR/USD will extend its uptrend, upwards swing, it the rate will rally from the current levels and after making a valid breakout above the second warning line (WL2).

● GBP/USD Seems Exhausted!

GBP/USD failed to jump above 1.3269 former high signaling exhausted buyers in the short term. Still, the bias is bullish as it stays above the 78.6% (1.3062) level and above the median line (ML) major ascending pitchfork.

Strong consolidation above the near-term support levels could still bring another momentum towards 100% (1.3513) level, up to the 50% Fibonacci line. A valid breakdown below the median line (ML) will suggest selling.

● GOLD Pressured By USDs Recover!

XAU/USD stands at $1,933 level, right above the 150% Fibonacci line. The USDs rebound has sent the gold price lower in the short term. The drop could be ended if the price will continue to stay above the 150% Fibonacci line.

The $1,900 psychological level is seen as strong static support, downside obstacle, only a valid breakdown below this level will announce a larger corrective phase. XAU/USD moves in a range between $1,900 and $2,000 levels, an upside breakout will 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.

WikiFX, a third-party forex broker inquiry platform, has collected

the information of 19,000+ forex brokers, 30 regulators, and helped

victims recover over 300,000,000.00 USD. WikiFX App provides functions

like forex brokers inquiry, calender, forex news express, calculator and

other trading tools to help you get trading done with ease.

Forex brokers inquiry: in order to create a safe forex trading

environment, WikiFX offers you two methods of checking the compliance of

forex brokers, online checking and offline investigation report. WikiFX

has an independent inspection team, conducting on-spot visit to brokers

offices to identify they are trustworthy or not.

Forex calender: the financial events which may affect forex trading

Forex news express: providing you the latest info anytime and anywhere

Forex forum: tons of posts by WikiFX users, containing technical

analysis, industry discussion, fraud brokers exposure; Users can

exchange their thoughts here freely.