The price has increased significantly today and the rate is very close to take some important resistance levels, the rate has increased above two importnat obstacles, but remains to see if we’ll have a valid breakout, we still need a confirmation that the price will increase further, right now we have only a accumulation movement. The rate could increase on the short term if the USDX will slip lower again, the index is approaching the 102.54 static support, actualy we have a very strong confluence area, a drop below the 102.54 and below the confluence area will attract more sellers, which will force the USD to drop versus the other major currencies.
The Euro has increased on the mixed Euro-zone figures, the Final Services PMI rose from 53.1 to 53.7, exceeding the 53.1 estimate, is signalling that the expansion continues in the services sector. The German Final Services PMI surged from 53.8 to 54.4, beating the 53.8 estimate, has managed to reach the highest level of the last 5-months and have boosted the Euro, while the Spanish Unemployment Change has dropped unexpectedly, from 24.8K to -86.8K, has come better versus the -44.2K, moreover the French Final Serevices PMI has increased to 52.9, signalling that the expansion continues. We had also some poor data such as, the Spanish Services PMI and the Italian Services PMI have disappointed.
The rate has increased and has erased the yesterday losses, has climbed above the lower median line (LML) of the descending pitchfork and above the 1.0460 static resistance, we have to wait to see if this will be a valid breakout or not. Personally I’m wating till the price will close and will stabilize above the mentioned levels, a retest of the lower median line (lml) of the minor ascending pitchfork will bring up a buying opportunity with first target at the median line (ml) of the descending pitchfork.
The price could increase a little after the failure to reach the second warning line (WL2) of the former major ascending pitchfork, but I want to remind you that the outlook remains bearish despite the minor rebound.