EUR/USD Attracted By Confluence Area!|Influencer Analysis•Olimpiu Tuns

EUR/USD has recovered a little which is normal after the short-term sell-off. The rate could retest the broken support levels before resuming the corrective phase. The greenback has slipped lower only because the US Unemployment Claims have increased unexpectedly in the previous week to 870K, above the market expectations of 845K jobs.

Today, the Durable Goods Orders and the Core Durable Goods Orders could move the price. EUR/USD should drop towards new lows if the figures will come in better than expected, while some poor data could help the pair to return to 1.17.

● EUR/USD Deeper Drop Expected!

EUR/USD has changed little in the early morning even if the selling pressure is high. It has recovered from 1.1688 yesterdays low but the bias is bearish as long it stays below 1.17 and under the 250% Fibonacci line.

Technically, the pair could come back to retest the 1.17 level and the 250% line before dropping deeper. USDX could decrease a little to retest the broken upside obstacles as well before moving higher. Is good to know that we have a strong negative correlation between the US Dollar Index and EUR/USD. When the index grows, EUR/USD drops, and when the index drops, the pair grows.

EUR/USD is expected to drop after validating the Head & Shoulders pattern and after its drop below 1.17 and from the down channel between 250% and WL2 lines. 1.1495 and the first warning line (WL1) could attract the rate.

The broken downside obstacles have turned into resistance, the retest of these levels could bring a selling opportunity. Moreover, another lower low, drop below 1.1651 yesterdays low could suggest selling as well.

Personally, I believe that the perspective, outlook, will remain bearish as long as EUR/USD will be traded below 1.18 and under the second warning line (WL2). So, the pair could drop deeper even if well have a significant rebound in the short term.

● USDX Reversal Signaled!

The US Dollar Index has finally managed to escape from the major descending pitchforks body signaling an up reversal. The rate could come back to test and retest the upper median line (UML) and the 93.81 broken levels before jumping higher.

I‘ve told you in my previous analyses that a valid breakout above the 93.81 could bring a valid breakout from the descending pitchfork as well. Another higher high, jump above 94.59 yesterday’s high could validate a larger growth.

● USD/JPY Major Double Bottom Develops!

USD/JPY has rebounded from the median line (ML) again printing a potential Double Bottom pattern. Still, the reversal pattern is far from being confirmed. Only a valid breakout above the upper median line (UML) and above 106.60 could confirm a significant leg higher.

It remains to see how it will react when it will touch the 105.98 and the upper median line (UML). Technically, a breakout from the descending pitchfork is favored after its failure to close on the median line (ML).

{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 / Trader / Trainer / Portfolio Manager.

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