EUR/USD Upside Under Threat!|KOL Analysis•Olimpiu Tuns

EUR/USD is struggling to come back higher but the selling pressure remains high in the short term. USDXs rally could send the pair into agony. The greenback is somehow expected to appreciate as the CPI and Core CPI have increased by 0.4% in August, beating expectations.

Today, the Euro-zone Industrial Production could bring life on EUR/USD. The economic indicator is expected to increase by 4.0%, less versus 9.1% in the former reading period.

EUR/USD is traded at 1.1850 level at the time of writing, 1.17 is seen as critical support, while 1.19 level represents strong static resistance. A valid breakout through one of these levels should bring a great trading opportunity.

● EUR/USD Up Channel Intact!

EUR/USD continues to be traded within an up channel, it has bounced off the downside line and now is located in the buyers territory, above the 1.18 psychological level. Still, only a valid breakout above the second warning line (WL2) would suggest buying.

Thursdays candle signals some bearish pressure as long as the rate stays below the warning line (WL2). The pair has failed to stabilize below 1.18 in the last attempts, but it could still register a valid breakdown through this downside obstacle as long it stays near it.

The bearish divergence is evident but only a valid breakdown from the up channel and below 1.17 will confirm selling with a first downside target at 1.1494 level. On the other hand, a bullish closure above WL2 and above 1.19 could attract more buyers which will drive the rate at least until 1.2000 psychological level.

An upside breakout from the current channel and above 1.2 will really confirm buying. The third warning line (WL3) is seen as a potential upside target.

● USDX Temporary Drop？

The US Dollar Index is trading in the red but the current drop could be only a minor one before it jumps higher. Its traded at 93.21 level way above the 92.55 critical support. Another higher high, jump above 93.66 would confirm further growth.

We have a strong negative correlation between the USDX and EUR/USD. The pair grows as the USDX drops. A dollar index upside momentum will push EUR/USD towards new lows.

93.81 is seen as critical resistance, a valid breakout of this obstacle could validate a further growth beyond the upper median line. This scenario could announce reversal and the USD domination.

Thursdays calde signals a potential further growth, only a drop below 92.55 could invalidate the upside scenario.

● GOLD Within A Symmetrical Triangle!

XAU/USD moves sideways around $1,945 level. It has developed a triagle pattern on the Daily chart, a valid breakout from this formation will give us a trading opportunity. The rate seems undecided and it waits to see what will happen on the USDX.

A USD‘s growth versus its rivals could send XAU/USD down, while a greenback’s depreciation should boost the gold price.

{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 / Trader / Trainer / Portfolio Manager.

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