EUR/USD, GBP/USD, and Gold Technical Analysis|KOL Analysis•Olimpiu Tuns

EUR/USD is traded at 1.1797 level, right below the 1.18 psychological level and it seems a little heavy after Friday‘s strong drop. The pair remains bullish even if we’ll have a minor retreat in the short term.

The latest US data could boost the greenback in the short term, so EUR/USD could slip lower in the upcoming period. The Non-Farm Employment Change was reported at 1763K in July, beating the 1530K estimate, the Unemployment Rate has decreased from 11.1% to 10.2%, below the 10.5% expectations, while the Average Hourly Earnings rose by 0.2%, even if the specialists have expected a 0.5% drop.

Better than expected economic figures have forced the USDX to rebound, a larger upside movement will push EUR/USD towards new lows these days.

● Is The USDX Ready To Jump Higher？

USDX continues to stay above the inside sliding line (SL1) of the descending pitchfork signaling a potential reversal. Still, the index will validate an important leg higher only after a valid breakout above the 93.81 level and above the 50% Fibonacci line.

The failure to approach and reach the SL2 and the median line (ML) has signaled that the index could come back higher in the short term. Only another lower low, drop below the 92.52, will confirm further drop.

The US Dollar Index has developed a double bottom reversal pattern, a jump above the 93.54 level will confirm this pattern and will announce an increase towards the upper median line (UML) of the descending pitchfork. It is hard to believe that the USDX will resume the downside movement after Fridays rally. Though, anything could happen as long as the rate stays below the 93.81 level.

● EUR/USD Printed A Bearish Engulfing Pattern!

EUR/USD has failed to approach and reach the second warning line (WL2) of the descending pitchfork after the incapacity to close above the 1.1910 former high. The pair is trading in the red and it could drop deeper if the USDX will resume its rebound.

The first downside target is seen at the 1.17 psychological level, only a valid breakdown below this obstacle will validate a larger drop. Technically, a potential correction is natural after the impressive upside movement. The first warning line (WL1) could be used as downside target as well if the rate will close and stabilize below the 1.18 and below the 250% Fibonacci line.

Friday‘s bearish engulfing signals a reversal on EUR/USD, but the pair remains somehow bullish as long as it’s traded above the WL1 and above the 1.1494 static support. A temporary drop could bring a buying opportunity.

● GBP/USD Seems Exhausted!

GBP/USD is traded at 1.3051 level, below the 78.6% level, the next downside target is at the median line (ML) of the major ascending pitchfork. The bias is bullish as long as GBP/USD is traded above the median line (ML).

A valid breakdown below the ML will validate a potentially significant drop, while a rejection from the median line or a false breakdown with great separation will suggest buying again.

Technically, GBP/USD was somehow expected to climb towards the 100% (1.3513) level and towards the upside 50% level. This scenario is still valid as long as the rate is located above the median line (ML).

● GOLD Reversal Pattern!

The gold price has developed a bearish engulfing reversal pattern, the false breakout above the 250% Fibonacci line signals a temporary decline. The $2,000 psychological level and the first warning line (WL1) are seen as critical support levels, a drop below these obstacles will announce a broader decline, correction.

Only another higher high, jump above $2,073 all-time high will confirm further growth towards fresh new highs, towards the second warning line (WL2).

{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 / Signal Provider / Trader / Trainer.

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