Daily Forex Market Analysis: EUR/USD

Duncan Cooper ACY Securities

EURUSD Overview:

Watch the video for a summary of today’s news releases, a review of the USD Index, and complete Top Down Analysis of the EURUSD.

EURUSD Weekly:

Weekly support at 1.1704, resistance at 1.2243.

On the weekly chart we may be seeing a double top. Price has moved up to resistance at 1.2243 and then sold off during last Friday’s trading. MACD on the weekly has shown negative divergence and this current move up could be the last weekly rally before a longer-term decline.

EURUSD Daily:

Daily support at 1.2181, 1.2150 and 1.2051, resistance at 1.2245.

Price is holding to an uptrend and on Friday closed at daily support at 1.2181. Price did show a reversal candle and it may be the first sign of a change in trend at or above the 1.2200 level.

Price closing above 1.2245 resistance would keep the uptrend in play. Another retest and failure at the 1.2200 level would present an ideal opportunity to sell at a strong resistance level. Price breaking below 1.2051 support would confirm a change in trend and start to confirm the possibilty of a weekly double top and a larger move down.

Author

Duncan Cooper

ACY Securities

Duncan Cooper is a full-time trader and mentor. He has been actively trading the financial markets for more than 15 years and has traded stocks, options, futures, and the Forex Market since 2005.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.