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Are More Gains Ahead?
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The $EURUSD began a bullish run in May 2020 from level 1.0893 to the current level at 1.1816. This signifies that the EUR has gained more than the USD since May 2020. The last time price of $EURUSD reached the current/resistance level of 1.18160 was in June 2018. The recent bullish trend was about 11%. Before the bullish trend began, the bearish trend lasted for two years. Using the RSI, price has been overbought. This made the $EURUSD to range between 1.1696 and 1.1962 throughout the month of August.To get more news about WikiFX, you can visit wikifx official website.
$EURUSD reached the level 1.19654 before price retraced to the downside. The candlestick has broken the Ichimoku Cloud to the downside. In the short term, price could rally within the week. A breakout of the resistance level at 1.19654 could be temporary. The USD might begin to gain strength in the next few weeks, which shows $EURUSD might fall.
As USD might appreciate against the EUR, price might fall to 1.1160. The fall could generate about 700pips. Later in week, the Fed Chairman will give a speech; this will be of high impact on the USD market.
GBP/USD Price Consolidates
GBPUSD 4hr Time Frame has reached a consolidation level. Ever since a breakout has occurred to the downside in June 2018, price of $GBPUSD has failed to break the resistance level to the upside. Despite the price value of $GBPUSD has dropped in the last two years, price retested the resistance level at four different occasions.GBPUSD has been on a bullish move since March 2020, from the support level of 1.14054 to its current resistance level of 1.32694. A range in the price of $EURUSD has been between the support level at 1.29811 and the resistance level at 1.32694, which is about 250pips. The candlesticks have been in and out of the cloud. A downward breakout of price from the cloud might lead to $GBPUSD beginning a downward trend or a breakout to the downside of the support level could begin a major drop in the price of $GBPUSD.
RSI has reached the overbought regions at two different times. The initial one was spotted in the last week of July 2020, while the second overbought position was reached on the 19th of August. The Ichimokus future currently shows the bulls might be in charge but RSI has recurrently shown that price is currently overbought without price breaking out the resistance level at 1.32964.
$GBPUSDs rally could be temporary, which might also lead to a fake out from the resistance level. As we expect high impact news on Thursday from the Fed Chairman on the USD, the USD might appreciate; which could lead to the beginning of a downward trend. If price breaks the support level, price might eventually reach a new support level at 1.26398. USD might gain about 500pips against the GBP.