EWFORE.NET
EUR/USD FXCM $1.0185, USD/PEN BLOOMBERG S/. 3.8578, GOLD $1778, USOIL $88.22, BITCOIN $24141
Fundamental
The dollar is well bid this morning as risk aversion runs through global markets. Last night, China came in with bad Industrial Production numbers growing 3.8% yoy in July instead of the 4.6% expected. However, Asian and European stocks were mostly green shrugging the China miss off.
This was not the case for the US open. Early this morning, US futures were red coming into the US opened which ran red too.
Technicals
The Dollar hammered the EUR this morning with EUR/USD dropping below critical support. The first line breached was the move below the 1.02733 July 20 high. From there price pushed down below the Minuette Degree lower channel trend line. This break opened up the possibility that this drop was a 3rd wave of a impulse to the downside.
And the pair didn’t stop there pushing down blew the 1.0201 Aug 10th low and carving out a possible 4th wave around the 1.0200. The pair is currently trading at the 1.0183—Very bearish midterm.
Support is at the 1.0158 which is the 50% retracement of the move up from the 0.9952 July 14 low to the 1.0369 Aug 10 high. The 61.8% is the 1.0109.