EUR/USD Rallies As Expected!|KOL Analysis•Olimpiu Tuns

EUR/USD has accelerated its bullish momentum as the USDX continues to drop. The pair has climbed as much as 1.1998 level today and it should touch 1.2 psychological level soon. It remains to see how the pair will react around the 1.2000 level, a valid breakout will really suggest further growth.

Today, the US and EUro-zone data will bring strong action on EUR/USD. The greenback will lose more ground if the United States figures will disappoint. ISM Manufacturing PMI indicator is expected around 54.6 points in August, better versus 54.2 in July, while the Final Manufacturing PMI could remain steady at 53.6 points.

US Construction Spending could increase by 1.0% after a 0.7% drop, moreover, Wards Total Vehicle Sales could jump from 14.5M to 15.0M in August. Better than expected numbers could stop the EUR/USD rally around 1.2 level.

EUR/USD is strongly bullish, the Euro-zone Unemployment Rate, CPI Flash Estimate, and the Core CPI Flash Estimate are expected to report worse data compared to the last reading period.

● EUR/USD Strongly Bullish!

EUR/USD is almost to reach 1.2 psychological level after an amazing rally since Friday. It has ignored the second warning line (WL2) of the former descending pitchfork signaling strong bulls and powerful momentum.

Yesterday, EUR/USD was traded right below the WL2 at the time of writing, Ive said that a breakout of this dynamic resistance will lead to a broader upside movement. A valid breakout above 1.2 validates further growth to the 350% Fibonacci line (descending dotted line).

However, a rejection, false breakout above 1.2 level could send the rate down to the WL2. The rate could come back to retest the WL2 before taking out the 1.2000 static resistance. Closing above 1.2 level makes EUR/USD very attractive as the rate will record another higher high.

WL3 (third warning line) could attract the quote if EUR/USD will close and stabilize above 1.2 resistance.

● XAU/USD Shines Again!

The price of Gold approaches the $2,000 psychological level after the failure to retest the $1,9 level. A valid breakout above this static resistance and above the first warning line (WL1) will confirm more gains in the upcoming period.

Actually, a valid breakout through the confluence area formed at the intersection between 2,000 with the WL1 could represent a strong buying signal. This scenario will bring more buyers into the market which will drive the rate towards the 250% Fibonacci line again.

$2,075 all-time high and the $2,100 psychological level are seen as potential upside targets. Gold could slip lower in the short term only after a false breakout through the confluence area. A rejection from the $2,000 level could push it at least until the 150% Fibonacci line.

USD‘s further drop should push the gold price beyond the $2,000 level. Today’s economic data will add high volatility on gold as well, the risk-on rally could resume if the economic figures will come in worse than expected.

{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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