Price dropped sharply in the yesterday’s trading session and now is located deep in the seller’s territory. Has changed little in the morning, but the Euro-zone data should bring some volatility later. The bulls seem tired on the short term, but is premature to talk about another leg lower because is still located above an important dynamic support.
The Euro increased a little after the German Retail Sales were released, even if the report has come in much worse than expected, the indicator dropped by 1.2%, more versus the 0.5% estimate. The Euro-zone CPI Flash Estimate and the Core CPI Flash Estimate will be released later and could shake the price. Moreover, the Unemployment Rate is expected to remain steady at 9.1% for the second month in July.
Price dropped much below the upper median line (UML) of the major ascending pitchfork, but failed to retest the median line (ml) of the minor ascending pitchfork. Now is fighting hard to increase and to retest the 0.9226 level and the UML. A retest followed by a minor decrease will confirm a broader drop in the upcoming period.
Looks like we had a false breakout above the UML, the failure to reach the outside sliding line (sl) has signaled an exhaustion.
Price could still increase after a median line (ml) retest, only a breakdown below it will signal a drop at least till the lower median line (lml).
