EUR/USD Upside Safe and Sound!|KOL Analysis•Olimpiu Tuns

EUR/USD erased yesterday‘s losses and confirms its upside outlook once again. The fasle breakdown with great separation below 1.18 level confirms further growth. Unfortunately, yesterday’s US data failed to support the greenbacks appreciation.

The Unemployment Claims indicator was reported at 860K above 825K estimated, the Building Permits were reported lower at 1.47M versus 1.51M estimate, while the Housing Starts dropped from 1.49M to 1.42M in August, below 1.47M forecast.

Today, the Euro-zone is to relese its Current Account data. The economic indicator is expected to drop from 20.7B to 12.0B. On the other hand, the US Current Account could drop further from -104B to -158B.

The USD needs strong support from the US economy today to be able to rebound after the current decline. The CB Leading Index could increase by 1.3%, while the Prelim UoM Consumer Sentiment may increase from 74.1 to 75.0 which it could be good for the dollar.

● EUR/USD Still Bullish!

EUR/USD failed to close below 1.18 and under the channel‘s support confirming again that the bulls are very strong. Yesterday’s false breakdown with great separation suggests a short-term bullish momentum.

Technically, a valid breakout above the second warning line (WL2) could really suggest buying as EUR/USD should approach and reach at least the channels upside line and the 1.2 psychological level.

The potential Head & Shoulder pattern was invalidated by yesterday‘s bullish candle. The pin bar signals further upside momentum after the short-term indecision. I’ve told you in my previous analyses that EUR/USD will develop a corrective phase only if it drops and closes below 1.17 critical support, otherwise, the outlook remains bullish and the rate could jump far above 1.2 psychological level.

An upside breakout from the up channel invalidates the bearish divergence and could bring a sharp bullish momentum towards the third warning line (WL3).

● USDX Under Pressure!

The dollar index drops after another failure to approach and reach the 93.81 static resistance. This time it could reach the 92.55 critical support and the minor downtrend line, a valid breakdown through this downside ostacles could validate a deeper drop.

USDX‘s drop pushed EUR/USD higher, weakens the greenback versus its rivals. So, only another upside momentum could signal USD’s appreciation. The selling pressure remains high as long as the index stays within the major descending pitchforks body, below the upper mdian line (UML).

● XAU/USD Triangle Breakout!

Gold increased again today due to USDs decline. An upside valid breakout from the current symmetrical triangle attracts more bulls. Another higher high, jump above $1,973.63 represents a bullish signal.

XAU/USD failed to reach and retest the trinagle‘s support, that’s why an upside breakout is favored. Only a USDXs aggressive rally could send the yellow metal down again. Gold maintains a bullish outlook as the global risk remains high. Nobody knows how brutal the COVID-19 second wave could be, so the yellow metal remains an attractive safe-haven asset.

{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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