EUR/USD increased as the USDX slipped lower in the last hours. Price is fighting hard to climb much higher in the upcoming period, but I’m not sure that will have enough directional energy to do this. Technically, the rate has shown some exhaustion signs, but we still need a confirmation that will drop much deeper in the upcoming period.
It could come higher to retest a resistance level before will drop much deeper again, a corrective phase is still possible as the dollar could be too oversold to drop much deeper.
Euro stays higher even if the Euro-zone data have come in mixed, the Spanish Unemployment Change was reported at 46.4K, much above the 16.3K estimate and versus the -26.9K in the previous reading period, while the PPI increased only by 0.0%, less compared to the 0.1% estimate. Moreover, the Sentix Investor Confidence increased by from 27.7 points to 28.2 points, even if the traders have expected to see a drop to 27.4 points.
EUR/USD increased and could come to retest the upper median line (uml) of the minor ascending pitchfork. A rebound is natural after the false breakdown below the median line (ml) of the minor descending pitchfork. Could be attracted by the confluence area formed at the intersection between the upper median line (uml) with the descending pitchfork’s uml. Technically is somehow expected to drop towards the median line (ml) of the minor ascending pitchfork.
