EUR/USD has decreased today and gas resumed the yesterday’s bearish candle. I’ve told you in the previous report that this could still be a temporary rebound and that the rate still maintains a bearish perspective.
USD has taken the lead again and drives the EUR/USD higher as the USDX is trading in the green again after the minor retreat. The USDX’s increase it was somehow expected, I’ve said in the previous days that we may have another breakout attempt above the near term resistance levels.
Technically, USDX is somehow expected to jump much higher after the false breakdown below the confluence area formed between the inside sliding line (SL) and the upside 50% Fibonacci line of the ascending pitchfork.
It has managed to jump above the upper median line (UML) of the descending pitchfork and now it seems determined to challenge the outside sliding line (SL1), which it represents a very strong dynamic resistance. A valid breakout it will really confirm a further increase towards the inside sliding line (sl1) of the ascending pitchfork and the USD’s dominance.
A larger upside movement will be confirmed only by a valid breakout above the sliding line (sl1) and above the upper median line (uml).
EUR/USD drops like a rock and it is almost to reach the outside sliding line (sl) of the minor ascending pitchfork. A valid breakdown will announce a further drop and the next downside obstacle it will be at the outside sliding line (SL) of the major descending pitchfork.
Only a valid breakdown below the SL it will really confirm a further drop towards the 150% Fibonacci line and towards the 1.1000 psychological level.
It is somehow expected to drop further after the failure to stay above the LML, above the 50% retracement level and within the ascending pitchfork’s body.