Price rallied aggressively on Friday after the Yellen’s speech, has touched fresh new highs and looks determined to approach new peaks in the upcoming period. Has opened with a gap up in the morning, but failed to stay near the 1.1959 today’s high and now is trying to close the morning gap. The pair remains bullish on the short term, right now we don’t have any reversal sign.
The EUR/USD could climb much higher as the USDX is under massive selling pressure. USDX plunged on Friday and closed below the 92.55 previous low, the index is pressuring the 92.49 long term horizontal support. A valid breakdown below the 92.49 critical support will confirm a further drop and a USD’s depreciation.
Euro should climb much higher even if the Euro-zone data have failed to impress earlier, the Private Loans increased by 2.6% in July, less versus the 2.7% estimate, while the M3 Money Supply rose by 4.5%, less compared to the 4.9% estimate and compared to the 5.0% in the former reading period.
Technically, should resume the upside movement if it will stabilize above the upper median line (uml) of the ascending pitchfork. Only a failure to stabilize above this level will signal an exhaustion and a potential downside movement. The next upside target will be at the 50% Fibonacci line (ascending dotted line), remains to see how will react when will hit this level. Should retest also the outside sliding line (sl) of the minor ascending pitchfork, a failure to reach this dynamic resistance will signal a reversal.
