The currency pair increased significantly today and resumed the yesterday’s bullish candle. The today’s increase will invalidate the Wednesday’s breakdown, that’s why we may have another bullish momentum in the upcoming days. Price is trading in the green and tries to climb much higher as the dollar index dropped further today.
The USDX is trading in the red and is under selling pressure on the short term again. The index has found strong resistance and 93.68, much below the 93.81 static resistance and now goes down and could retest the 92.49 horizontal support before will try to climb higher again.
The Euro increased despite some poor Euro-zone data, the German Retail Sales dropped by 0.4%, even if the traders have expected to see a 0.5% growth. Moreover, the Euro-zone CPI Flash Estimate increased only by 1.5%, less versus the 1.6% estimate, while the Core CPI Flash Estimate surged only by 1.1%, less versus the 1.2% estimate.
Price failed to stabilize below the median line (ML) of the minor black ascending pitchfork and below the median line (ml) of the minor descending pitchfork. A retest of the ML will confirm a further increase in the upcoming period, the next target will be at the upper median line (uml) of the descending pitchfork.
The pair is trapped within the 1.2041 horizontal resistance and the 1.1711 static support, could move in range between these levels in the upcoming period after the failure to approach and reach the median line (ML) of the major ascending pitchfork.