EUR/USD posted humble gains today and seems like has lost the bullish momentum. It shows a little activity as the USDX has changed little as well today. The dollar index is trading in the red, but shows some exhaustion signs, even if is located under the 92.49 broken static support.
However, the USDX could drop much deeper to retest a dynamic support before will really start another leg higher. The dollar index is on a declining path, only some good US data and a dovish ECB could turn it to the upside again.
We have a crucial day for the Euro, the ECB is to release the Minimum Bid Rate, which is predicted remains steady at the 0.00% historical minimum. However, there are rumors that said that the European Central Bank will take action today, any stimulus measures will weaken the European currency.
The EUR/USD is fighting hard to hold the ground and to retest the upper median line (uml) of the ascending pitchfork. Technically, is overbought and could decrease at least till will reach the median line (ml) of the ascending pitchfork.
I want to remind you that the current bounce back is natural after the false breakdown below the median line (ml) of the minor descending pitchfork. A failure to reach and retest the upper median lines of the mentioned pitchforks, will signal a sharp drop in the upcoming period.
