The currency pair has dropped significantly in the morning and seems too heavy to be stopped on the short term. USD is going down versus all its rivals as the dollar index is under massive selling pressure. The index could approach and reach the nxt downside target from the 91.91 static support, we’ll see how will react after will hit this level.
The 91.91 level represents a crucial support, a valid breakdown will confirm a medium term drop and a USD’s massive depreciation versus all its rivals. The Japanese Yen rallied on the mixed economic data, the Household Spending dropped by 0.2% in the previous month, even if the economists have expected to see a 0.8% growth. Moreover the Unemployment Rate remains steady at 2.8% for the second month in July, matching expectations.
The price should drop further after the retest of the minor red uptrend line, the next downside target will be at the 108.13 horizontal support. Technically is expected to drop much deeper after the failure to stabilize above the second warning line (wl2) of the descending pitchfork. You can see that has retested the wl2, signaling a further decrease. The next major downside target will be at the first warning line (wl1), will approach it only if the Nikkei stock index will slide further.
