By Mexgroup.com
EUR/USD Struggling To Hold Ground
EUR/USD increased as the USDX slipped lower in the last hours. Price is fighting hard to climb much higher in the upcoming period, but I’m not sure that will have enough directional energy to do this. Technically, the rate has shown some exhaustion signs, but we still need a confirmation that will drop much deeper in the upcoming period.
It could come higher to retest a resistance level before will drop much deeper again, a corrective phase is still possible as the dollar could be too oversold to drop much deeper.
Euro stays higher even if the Euro-zone data have come in mixed, the Spanish Unemployment Change was reported at 46.4K, much above the 16.3K estimate and versus the -26.9K in the previous reading period, while the PPI increased only by 0.0%, less compared to the 0.1% estimate. Moreover, the Sentix Investor Confidence increased by from 27.7 points to 28.2 points, even if the traders have expected to see a drop to 27.4 points.
EUR/USD increased and could come to retest the upper median line (uml) of the minor ascending pitchfork. A rebound is natural after the false breakdown below the median line (ml) of the minor descending pitchfork. Could be attracted by the confluence area formed at the intersection between the upper median line (uml) with the descending pitchfork’s uml. Technically is somehow expected to drop towards the median line (ml) of the minor ascending pitchfork.
Free Reports:
GBP/USD Shows Low Activity
Price stays in the buyer’s territory but needs a bullish spark to be able to resume the upside movement. It has changed little today and seems a little exhausted, wasn’t able to approach and reach the 1.2994 Friday’s high. Could retest the 250% Fibonacci line before will climb much higher, is still bullish as long as is trading above this dynamic support.
The near term resistance is at the 1.3046, while the major resistance could be found at the 1.3266 previous high.
EUR/GBP False Breakdown?
EUR/GBP increased and tried to recover after the Friday’s drop. Remains to see what will happen because is pressuring the median line (ml) of the minor ascending pitchfork. A valid breakdown will signal a further drop. Has failed to retest the 0.9226 resistance today, but could do this in the upcoming days. Only a valid breakout above the 0.9226 and above the warning line (wl4) will confirm a further increase.
By Olimpiu Tuns
Market Analyst
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The post Daily Market Report – EUR/USD Poised For Further Gains? September 04, 2017 appeared first on mexgroupblog.
