Price rallies and extends the bullish momentum as the USDX is trading in the green. The USD has taken full control and drives the pair higher, remains to see what will really happen in the upcoming period and if the USDX will have enough energy to make a valid breakout above the 93.81 static resistance.
The rate edges higher and is almost to reach a very strong dynamic resistance. I’ve said in the previous days that technically it is expected to climb much higher in the upcoming period.
The USD appreciates versus its rivals as the United States data have come in better in the last days, the dollar index reached the 94.00 psychological level earlier and could finally make a valid breakout above the 93.81 static resistance.
The rate increased sharply and is almost to reach the median line (ml) of the minor ascending pitchfork, where he may find resistance again. Most likely will be attracted by the confluence area formed at the intersection between the median line (ml) with the first warning line (WL2) of the descending pitchfork. Resistance can be found at the 250% Fibonacci line (ascending dotted line) as well if will take out the near term obstacles.
We’ll see if will have enough energy to climb above the mentioned resistance levels, a rejection from the median line of from the WL1 will send the rate towards the WL2 again. We have a bullish bias as long as the rate is trading within the ascending pitchfork’s body.