Daily Market Report – EUR/USD The Breakout Invalidates The Rising Wedge
MultiBank Exchange Group | Jul 18, 2017 05:27AM ET
EUR/USD hit new highs
The currency pair edges higher on the daily chart targeting new highs, the bulls are very strong as the USD was punished by another USDX’s drop. The Dollar Index dropped much below the 95.00 psychological level, has found temporary support at 94.71 level, but could drop much deeper in the upcoming hours.
USDX is pressuring a dynamic support and approaches another one, looks unstoppable on the short term.
The Euro-zone is to release the German ZEW Economic Sentiment, which will increase from 18.6 to 17.8 points, while the ZEW Economic Sentiment could drop from 37.7 to 37.2 points.
Price rallied and managed to jump above the 1.1466 major static resistance and above the median line (ml) of the ascending pitchfork, signalling that the bulls are in full control. The breakout invalidated the Rising Wedge pattern and a potential leg lower.
Is expected to increase further in the upcoming period, the next major upside target will be at the 1.1615 swig high and the next at 1.1712. Is trading inside of a long term resistance area right now, but maintains a bullish perspective as the USDX is demolished by the fundamental factors.
GBP/USD targeting new highs
GBP/USD is trading in the green on the short term and looks determined to reach new peaks in the upcoming period. Is trading within an ascending channel and should approach and reach the upside line of this pattern in the upcoming days.
Price jumped above the 150% Fibonacci line (ascending dotted line) and is expected to climb towards the upside line of the ascending channel. Technically should take out the minor resistance from 1.3112 previous high.
Could be attracted by the lower median line (lml) of the minor ascending pitchfork, the bullish movement was expected after the failure to reach and retest the warning line (wl1) and the 1.2798 static support.
The BOE Gov Carney will speak at the unveil of the new £10 note, in Hampshire, you should be careful because the fundamental factors will take the lead.
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EUR/CHF faces tough resistance
Price continues to trade in the green and is challenging a strong resistance, is located above the 1.1050 psychological level and maintains a bullish perspective.
Is still trying to take out the major resistance from the upper median line (UML) of the ascending pitchfork and from the median line (ml) of the minor ascending pitchfork. The outlook is bullish as long as is trading within the ascending pitchfork’s body.
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