By Mexgroup.com
EUR/USD Too Exhausted To Stay Higher
Price is trading in the red rigth now and could resume the yesterday’s bearish candle. Technically is expected to decrease a little on the short term after the yesterday’s spike. EUR/USD rallied on Tuesday, but failed to stay near the 1.2070 high and now seems heavy and poised to correct after the bullish momentum.
The USDX is trading in the red right now, but is less likely to reach the 91.62 yesterday’s low. The behavior could change on the USDX, a minor accumulation will signal a rebound. USD needs a helping hand from the United States economy, only some positive data will force it to turn to the upside again.
The US ADP Non-Farm Employment Change is expected to increase from 178K to 185K, while the Prelim GDP could increase by 2.7%, more versus the 2.6% in the previous month. The FOMC Member Powell’s speech should bring some action as well. I want to remind you that another disappointment will demolish the USD.
Price has found strong resistance right below the upper median line (uml) of the minor ascending pitchfork, failing to touch this dynamic obstacle. Has show exhaustion signs because has closed the day also much below the 50%Fibonacci line. Should come down to retest the median line (ml) of the minor ascending pitchfork. A breakdown below it will attract more sellers.
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GBP/USD Rejected By Dynamic Resistance
Price has found strong resistance at the 150% Fibonacci line (ascending dotted line) and now is going down again. GBP/USD failed to approach and reach the 50% Fibonacci line and now could drop towards the median line (ml) of the descending pitchfork, actually could be attracted by the confluence area formed by the median line (ml) with the WL1 of the ascending pitchfork.
Brent Oil Seems Undecided
Brent has decreased in the last two days, but now looks undecided again. Needs a spark to be able to start a significant move. Is moving in range on the short term after the failure to close above the 53.03 static resistance. I’ve said in the previous reports that it could decreae to retest the lower median line (lml) of the minor ascending pitchfork. Technically should drop much below the $50 per barrel after the failure to approach and reach the median line (ml).
By Olimpiu Tuns
Market Analyst
The post Daily Market Report – EUR/USD Losing Momentum August 30, 2017 appeared first on mexgroupblog.
