Analysis for August 2nd, 2016
EUR USD, “Euro vs US Dollar”
The local correction continues. The closest target of the current ascending correction is the retracement of 61.8%. If later the price rebounds from this level, the market may resume falling towards the group of downside retracements at 1.0810.
As we can see at the H1 chart, the price is moving above the local retracement of 23.6%. Consequently, on Tuesday the pair break its previous high. We should note that if the market breaks the retracement of 61.8%, the current ascending correction will continue.
EUR GBP, “Euro vs Great Britain Pound”
Europound has already rebounded from the correctional retracement of 61.8%, but may test it in the future once again. However, if the price rebounds from this level one more time, it will be a very strong signal for the market to resume moving downwards.
As we can see at the H1 chart, the pair is consolidating below the retracement of 61.8%. If the price fails to break this level and stays below it, the market will resume falling. To confirm this scenario, the price has to fix under the retracement of 50% (0.8435).
RoboForex Analytical Department
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