The price has started to decrease again after the United States economic data was released, the greenback was boosted by the Retail Sales data, however, remains to see what will happen in the coming hours because the momentum could be only temporary, so we have to wait for a confirmation before we go long again on the USD.

The rate has erased the earlier gains and remains trapped below an important resistance level, technically remains under selling pressure, the USDX has edged higher in the last hours, but remains to see if will have enough energy to stay above the 101.29 static support.

We have to be patient to see what will happen because the latest US data have disappointed, the Prelim UoM Consumer Sentiment has decreased from 98.2 to 98.1 points, even if the economists have predicted an increase to 98.6 points, moreover the Business Inventories rose by 0.7%, exceeding the 0.3% estimate, has increased unexpectedly after the 0.1% drop from the previous reading period, this is bad for the currency. Moreover the Prelim UoM Inflation Expectations rose by 2.6% in January, has increased more versus the 2.2% growth from December 2016.

You can see on the Daily chart that the rate continues to stay under the upper median line (uml) of the descending pitchfork and could approach again the 1.2089 level and the lower median line (LML) of the major descending pitchfork, where he could find support again.

The rate continues to trade inside of an extended sideways movement, will drop further if the bears will force the price to drop below the 1.2089 range support and below the LML. Technically the price should increase again after the failure to close on the lower median line (LML) of the descending pitchfork, has close above the mentioned support levels, signalling that we may have another leg higher on the short term.

We need a fresh trading signal before we take action, right now we don’t have a trading opportunity, we could go long on this pair if the rate will fail once again to break below the mentioned support levels and if will climb and will stabilize above the upper median line (uml) of the minor descending pitchfork.