EUR/USD another rejection?
Price touched new highs in the morning, but the bulls failed to keep the rate above the 1.1471 Friday’s high and now is trading in the red. EUR/USD continues to be trapped within a major resistance area, so maybe will be better to stay away till we’ll have a valid breakout from this range.
Is moving somehow sideways on the Daily chart, technically is still showing some exhaustion signs, but we still need a confirmation that will turn to the downside again.
The Euro-zone Final CPI and the Final Core CPI will be released later, remains to see what impact will have. The Final CPI should increase by 1.3% in June, matching the 1.3% growth in the former reading period, while the Final Core CPI may increase by 1.1% in the previous month.
Price slipped below the 1.1450 level as the dollar index managed to rebound and to recover after the impressive sell-off. USDX remains under massive selling pressure on the short term, has found temporary support at the 95.05 level and now is fighting hard to recover.
Technically, we may still have a Falling Wedge pattern on the USDX if will stay above the 95.00 psychological level.
EUR/USD retested the median line (ML) of the ascending pitchfork and the 1.1466 long term static resistance and now is going down. Technically another leg lower is favored at this moment after the failure to jump above the mentioned resistance levels and after the failure to reach the 1.1488 previous high.
A bearish opportunity will appear if the Rising Wedge pattern will be confirmed, so we have to wait for a valid breakdown from the potential chart pattern to be sure that we’ll have a large corrective phase.
EUR/GBP selling opportunity?
The EUR/GBP dropped significantly in the previous three days and looks determined to reach fresh new lows in the upcoming period. Has fallen in the seller’s territory, so we may have a selling opportunity these days if will come back higher to retest the broken support level.
A sell-off is expected to come after the breakdown below the median line (ml) of the ascending pitchfork, has failed to stay above the 100% Fibonnacci level and above the second warning line (wl2) of the former descending pitchfork.
We’ll have a perfect selling opportunity if the rate will come back to test and retest the major confluence area formed between the 100% level, ML and the warning line (wl2). The next downside target will be at the lower median line (LML) of the ascending pitchfork.
EUR/CHF breakout attempt
Price is trading in the green on the Daily chart, signalling that the bulls are still in the game, is still bullish after the minor retreat and looks motivated to climb much higher in the upcoming period. Is trading right above the 1.1050 psychological level and is pressuring the upper median line (UML) of the major ascending pitchfork, a valid breakout will confirm a further increase.
However, another false breakout will send the rate towards the lower median line (lml) of the minor ascending pitchfork.