The currency pair decreased and is pressuring a very strong dynamic support. A breakdown is still favored as long as the USDX stay higher and tries to reach new highs. The dollar index increased today and erased the yesterday’s losses, but unfortunately, it is trapped below a very important resistance level.

USDX approaches other major upside obstacles, so it remains to see what will happen and how will react. The EUR/USD moves in range on the short term, but I really hope that we’ll have a clear direction very soon. We still have a bullish bias on the daily chart, so we still need a confirmation that we may have a reversal.

The Euro-zone Final Services PMI was reported at 54.9 points, lower versus the 55.0 estimate and compared to the 55.0 in the previous reading period, the PPI and the Retail Sales will be released later, remains to see what impact will have.

The German Final Services PMI dropped to 53.9, from 54.2 signaling that the expansion has slowed down, the traders have expected to see the indicator steady at 54.2 points, while the French Final Services PMI was reported at 56.9 points, above the 56.8 estimate and versus the 56.8 in the former reading period. Moreover, the German Factory Orders rose only by 0.3%, less compared to the 1.6% estimate, the Italian Services PMI decreased signaling a major expansion slowdown.

The rate moves in range and now is somehow expected to take out the support from the lower median line (lml) of the minor ascending pitchfork. A valid breakdown will confirm a further drop in the upcoming period, the next downside target will be at the median line (ML) of the major ascending pitchfork.

However, a false breakdown below the lower median line (lml) or a rejection will send the rate towards fresh new highs, so you should wait to see what will really happen in the upcoming days before you take action.