Daily Market Report: USD’s Upside Hope Killed
MultiBank Exchange Group | Jul 27, 2017 01:29AM ET
GBP/USD further increase expected
Price has increased in the second part of the day and has managed to resume the minor upside momentum. The greenback was ruined by the FOMC and now could drop much deeper versus all its rivals.
GBP/USD moves within an ascending channel, maintains a bullish perspective in the upcoming period, even if we’ll have a minor consolidation in the upcoming weeks.
As you already know, the Federal Reserve has maintained the monetary policy unchanged, the Federal Funds Rate remains steady at 1.25%, matching expectations, but unfortunately these decisions have demolished the USD.
USDX plunged after the FOMC Statement and now is located below the 93.50 psychological level, should drop much deeper after the retest of a strong dynamic resistance. The dollar index is very heavy right now and looks unstoppable, could approach the 92.49 major static support.
Price rallied in the last few hours and is very close to jump above the 1.3125 previous high, could touch also the first upside obstacle from the 150% Fibonacci line (ascending dotted line). Technically should increase further after the retest of the upper median line (UML) of the major descending pitchfork. I’ve said in the previous articles that the sentiment will change drastically if the rate will stabilize outside the major descending pitchfork.
I’ve also said that we’ll have a buying opportunity if will come to retest also the warning line (wl1), this scenario is still possible, it was too risky to buy the retest of the UML has shown some exhaustion signs.
You can see that GBP/USD is trapped within an ascending channel, could still reach the upside line of this pattern if the USDX will slide further, the next major upside targets ar at the lower median line (lml) of the ascending pitchfork and at the 1.3527 level.
Gold rallied as expected
The gold edges higher and resumes the upside movement, is trading right above the $1260 per ounce and most likely will target the 1295 level.
Has broken above the outside sliding line (descending dotted line) of the major descending pitchfork, we may have a buying opportunity if will close above this level. I’ve said in the previous report that the Gold is located in the buyer’s territory after the breakout from the descending pitchfork’s body and from the minor descending pitchfork’s body, has come only to retest the 38.2% retracement level and the warning line (WL1) before has jumped higher.
Get The News You Want
Brent Oil at new highs
Price is strongly bullish and could take out the resistance from the sliding line (SL) in the upcoming days, a valid breakout from the descending channel will drive the rate towards the next upside target from $53.03 per barrel. Brent could take advantage of the weaker dollar to reach new highs in the upcoming period.
Risk Disclaimer: Trading in general is very risky and is not suited for everyone. There is always a chance of losing some or all of your initial investment/deposit, so do not invest money you can afford to lose. You are strongly advised to carry out your independent research before making any trading decisions. All the analysis, market reports posted on this site are only educational and do not constitute an investment advice or recommendation to open or close positions on international financial markets. The author is not responsible for any loss of profit or damage which may arise from transactions made based on any information on this web site.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.