By Mexgroup.com

USD/CHF Valid Breakout?

USD/CHF decreased today and maybe you wonder if the rebound is completed and if will start another leg lower on the short term. Price is trading in the red and looks determined to drop much deeper in the upcoming hours as the USD is weakened by the USDX’s minor retreat.

Maybe a decrease is natural after the impressive rally and after the USDX’s impressive jump. The dollar index could still decrease in the upcoming days, only a failure to drop below the 92.55 and to retest the 92.49 major static support will signal a reversal. We may have a minor accumulation on the dollar index these days because needs to recapture more bullish energy before will really start another upside movement.

The CHF increased a little as the Switzerland Unemployment Rate remains steady at 3.2% in July, matching expectations. The US is to release the JOLTS Job Openings later, the greenback needs a bullish spark to be able to take the lead again.

Price has broken above the median line (ml) of the minor descending pitchfork, has failed to reach and retest the 250% Fibonacci line and now has come back to retest the broken median line (ml). Will increase towards the next upside targets (0.9787, 250% and the upper median line) if the dynamic support will hold.

We may have a buying opportunity if will decrease along the median line (ml) and if it will retest the second warning line (WL2) of the major ascending pitchfork. Is still under some pressure as long as is trading within the descending pitchfork’s body.

GOLD Throwback Underway

Gold bounced back from the warning line (WL1) as expected and should try to reach and retest the first upside target from the 38.2% retracement level ($1282). Will climb towards the mentioned obstacle only if it will close above the 1274.05 previous high.

The minor decrease has confirmed the warning line (WL1) and now tries to approach new peaks on the short term. We have a major resistance near the $1295 per ounce, will reach this area if the USDX will slide further.

NZD/USD Breakdown Needs Confirmation

Price managed to break below the 23.6% retracement level and below the 0.7375 static support (support turned into resistance). Has increased today and could come back to retest the broken levels, will drop towards the fourth warning line (wl4) if will stabilize below these obstacles.

By Olimpiu Tuns

Market Analyst

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