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.
