Hot Topics:
- Indices Broke Down Their Bullish Trendlines.
- Euro Group Close to Find a Short-Term Bottom.
- US Dollar Climbs Before Minutes Release.
Indices Broke Down Their Bullish Trendlines
Trend Line Analysis: Indices in the early trading hours of the session opened lower breaking down its bullish trendlines. However, FTSE and DAX did not crumble below their invalidation levels. Likely, both indices could make a 1-2-3 pattern. Invalidation level in FTSE is at 7,753.3 points.
On the other hand, DAX has paid its bearish divergence in 12,958 points, as said in a previous Daily Update. Invalidation level of the bullish structure is at 12,918. We expect the German index to have a consolidation structure and reveal the new potential move.
Euro Group Close to Find a Short-Term Bottom
The Euro group, in general, is moving bearish. Currently it is consolidating and showing signals of a potential reversal; however, we expect a brief price recovery, to then see more downward moves long-term.
EURUSD continues its downtrend and has two new potential bearish targets in the short-term: 1.16734 and 1.15637. From this zone, the pair could create a new bullish connector. Invalidation level is moved at 1.18298.
EURAUD continues above the Control Level and is moving sideways. For the oceanic cross, we have two scenarios:
- First scenario: the price breaks below the control level and finds new lower targets in 1.53074 or 1.52952.
- Second scenario: the price breaks above the invalidation level at 1.56192 and sees new highs, the first resistance is 1.57233 level.
EURCAD is bouncing from the first bearish cycle target level at 1.50373. The invalidation level for this bearish cycle is 1.51385. If the price breaks above this level, the price could see the 1.5533 level again.
US Dollar Climbs Before Minutes Release
Trend Line Analysis: The US Dollar Index raises at the halfway point of the trading session while it waits for the Minutes of the FOMC. GBPUSD still moves at the potential reversal zone, where the price should make a new connector. Invalidation level of the bearish sequence is 1.34918.
In the same way, the USDCHF moves higher making a pullback to the breakdown zone. Probably, the pair will move higher as an ascending A-B-C pattern before to collapsing again, building a new leg long-term. Invalidation level of the bearish cycle is at 1.00561.
