EUR/USD Holds Above 1.18 Psychological Level! What Now?|KOL Analysis•Olimpiu Tuns

EUR/USD is back above 1.18 level as the USDX has slipped lower in yesterday‘s session. It is still located in the buyer’s territory meaning that the outlook remains bullish, for now. The price has developed a minor up channel, only a downside breakout will invalidate further growth.

The currency pair is traded at 1.1816 level, lower versus 1.1839 today high. It could come to test and retest the 1.18 psychological level in the coming hours. The US is to release the Durable Goods Orders and the Core Durable Goods Orders later today. The economic indicators are expected to increase by 4.4% and 1.9% in July, less compared to June.

The greenback has lost altitude in the short term versus its rivals as the CB Consumer Confidence has disappointed yesterday, the indicator was reported at 84.8 points, far below 93.0 estimates and 91.7 points in the former reading period.

● USDX Moves Sideways!

USDX is challenging the resistance at 50% Fibonacci line. The index was rejected by this dynamic resistance in the past, so only a valid breakout above this line signals further growth up to 93.81.

As you already know from my latest analyses, the US Dollar Index will reverse if it will close and stabilize above the 93.81 level. Otherwise, the index could drop deeper and it could force EUR/USD to jump towards fresh new highs.

The pressure is still high as long as it stays below the 50% Fibonacci line, a drop below 92.55 could validate a brand new bearish momentum.

● EUR/USD Prints A Minor Channel!

EUR/USD is bullish as long as its located above 1.18 and above the 250% Fibonacci line. The up channel breakdown followed by a drop below 1.17 psychological level will bring a selling opportunity as the rate will be expected to develop a broader corrective phase.

Please keep in that, EUR/USD will resume its upside journey if it jumps and closes above the second warning line (WL2). Actual sideways movement, range, will definitely bring great trading opportunities, long or short.

RSI still shows a bearish divergence on the Daily chart. Though, only a drop below 1.17 will suggest selling. If the bearish divergence will be invalidated by a new higher high, the quote will fly way above the 1.20 level.

● GOLD Losing Altitude!

XAU/USD extends its bearish movement after losing the chance to stabilize above the 150% Fibonacci line. The immediate target remains at $1,900 psychological level. The gold price could react at this level and it could return higher.

The yellow metal failed to reach the upper median line (UML) in the last attempt. Gold will give birth to a larger drop, corrective phase, if it drops and stabilizes below 1,900 and below the upper median line (UML).

Another false breakdown with great separation below $1,900 will suggest buying again as the rate should come back above $2,000 level.

{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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