The EUR/USD rallied and resumed the bullish movement, but has found strong resistance and now is very close to erase today’s gains. Remains to see what will happen in the upcoming days because the rate has shown the first exhaustion signals, but is premature to say that we’ll have another leg lower from here.

The rallied even if the USDX registered only a minor drop, the index failed to reach the 92.16 yesterday’s low. USDX is under massive selling pressure on the short term, only some good United States data will help the greenback to climb higher again.

The USXD could still drop towards the 91.91 static support level, where he could find some demand again. Could drop further anytime because is under immense selling pressure on the Daily chart, only the FED could force it to turn to the upside again and to help the USD to appreciate versus its rivals.

The German Gfk Consumer Climate increased from 10.8 to 10.9 points in August, beating the 10.8% estimate, the French Consumer Spending rose by 0.7% in the previous month, matching expectations, while the French Prelim GDP surged by 0.5%, matching expectations and the 0.5% growth in the former reading period.

The EUR/USD decreased in the second part of the day, but maintains a bullish perspective on the Daily chart.

Price increased as much as 1.2070 level, but unfortunately, the buyers weren’t strong enough to keep the price there and now are losing significant ground.

Price failed to reach and retest the upper median line (uml) of the minor ascending pitchfork, signaling an exhaustion and a potential drop at least till will reach the median line (ml) of the ascending pitchfork.

Has found strong resistance above the 50% Fibonacci line, but now is trading much below it, a failure to close on this line will confirm a quick drop in the upcoming period.

I’ve said higher that is premature to say that we’ll have another drop, only a USDX rebound will signal a decrease.