USD Needs A Bullish Spark!| Daily Forex Analysis•Olimpiu Tuns

The US dollar has retreated versus its rivals as the USDX has plunged from 94.74 high to 93.81 static support. USDXs decline could be ended if the US will report better then expected data later today.

The US ADP Non-farm Employment Change is expected to increase from 428K to 650K in September, the Final GDP could drop by 31.7% in Q2, the Chicago PMI could be reported higher at 52.0 points, while the Pending Home Sales increase could continue.

The greenback could strike back and could take full control if the US economic figures will come in line with expectations or better. The current week could be crucial for the dollar, the high impact data could help the dollar to continue its growth or could change the sentiment.

● US Dollar Index Upside Still Safe!

Technically, the US Dollar Index has found strong resistance at 94.65 level and now it has come back down to retest the 93.81 and the upper median line (UML). The breakout above these levels will be confirmed if the index stays above these downside obstacles.

Maybe the current drop was natural after the aggressive rally and breakout. Another higher high, bullish closure above 94.65 could validate a larger upside movement. The higher highs and higher lows signal a potential uptrend. EUR/USD has decreased only due to USDXs drop.

● Is The EUR/USD Rebound Over？

EUR/USD has bounced back from 1.1612 and now is traded at 1.1729 level. The USDXs drop has pushed the pair higher. Still, another bullish momentum on the dollar index should push the currency pair down towards fresh new lows.

The price has failed to stabilize under 1.17 psychological level and below the 250% Fibonacci. It could come back to test and retest the up channels support and the 1.18 before dropping again.

Also, a quick drop below 1.17 without retesting the immediate resistance levels could signal a downside continuation. Its hard to believe that the corrective phase is over as the price has escaped from the up channel and has validated a Head & Shoulders pattern.

The selling pressure remains high as long EUR/USD stays under 1.18 and below the second warning line (WL2) of the former descending pitchfork. A larger corrective phase will be confirmed by another lowe low, drop below 1.1612 low.

● GBP/USD Seems Vulnerable To Slide Further!

GBP/USD has found temporary support at the 61.8% (1.2712) level and now is struggling to return higher but the pressure remains high. The new lower low of 1.2674 signals only a temporary rebound before dropping deeper.

The resistance stands at the 78.6% (1.3066) retracement level and at the median line (ML). Failing to reach and retest these levels, could bring a sharp drop. This scenario could take shape if the US data will come in better than expected during this week.

A valid breakdown below the 61.8% level could rally validate a further drop towards the downside 50% Fibonacci line and back to the 38.2% (1.2463) 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 / Trader / Trainer / Portfolio Manager.

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.