Daily Market Report – EUR/USD At First Downside Target September 26, 2017

By Mexgroup.com

EUR/USD Additional Drop Expected

The currency pair has dropped sharply today and resumed the yesterday’s bearish candle. Is trading in the red and seems too heavy to be stopped on the short term. However, the pair has touched a dynamic support, which could put the downside on hold.

EUR/USD dropped as the USDX has finally managed to start a bullish momentum. The index is trading right above the 93.00 psychological level, much above the 92.49 static resistance.USDX has also jumped above a dynamic resistance, a valid breakout will signal a reversal and a USD dominance.

The dollar could dominate the currency market on the short term after several months depreciation. The USD still needs support from the United States economy, the CB Consumer Confidence is expected to drop from 122.9 to 119.9 points in September, while the New Home Sales could increase from 571K to 585K in the previous month.

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Price extended the bearish momentum and reached the first downside target from the median line (ml) of the minor descending pitchfork. It should reach also the median line (ML) of the ascending pitchfork. I’ve said in the last days that the rate could be attracted by the confluence area formed between the ML with the minor median line (ml).

A valid breakdown through the confluence area will accelerate the sell-off, which will approach and reach the median line (ML) of the major black ascending pitchfork.

GBP/USD Goes Down

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Price drops further on the short term and approaches the first warning line (wl1) of the ascending pitchfork, where he may find support again. GBP/USD decreased as expected, I’ve said that we may see a minor decrease after the failure to stay above the 150% Fibonacci line and after the false breakout above the upper median line (uml) of the minor descending pitchfork. Technically, it should approach the median line (ml) of the minor red descending pitchfork.

USD/CHF Still In Range

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The USD/CHF is fighting hard to stay above the second warning line (WL2) of the major ascending pitchfork. You can see that continues to move in range on the short term, so only a breakout from this range will bring us a clear direction. We’ll have a reversal, only after a valid breakout from the descending pitchfork’s body.

By Olimpiu Tuns

Market Analyst

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