The EUR/USD increased and tries to approach and reach the 1.1833 yesterday’s high. The rate is trading in the green as the USDX dropped again. The dollar index is trading in the red, but is somehow expected to climb higher in the upcoming period.

USDX moves somehow sideways on the short term, but I really hope that we’ll have a clear direction very soon. Technically, the dollar index is still expected to climb higher after the FOMC decision to hike the rate, but this scenario will take shape only if it will have enough energy to climb and stabilize above the 94.23 previous high.

The dollar index still needs some support from the United States data. The Euro increased even if the German Ifo Business Climate dropped from 117.6 to 117.2 points, much below the 117.6 estimate. On the other hand, the US data have come in better than expected, so the dollar should increase a little.

The USDX decreased, but failed to reach the 93.40 yesterday’s low, it is pressuring a dynamic support right now. You can see that has found support at the median line (ML) of the major descending pitchfork, so is somehow expected to increase again.Only a valid breakout above the inside sliding line (sl) of the descending pitchfork will confirm a further increase in the upcoming weeks.

The rate has come back after the retest of the median line (ML) of the major ascending pitchfork. It is pressuring the confluence between the lower median line (lml) of the minor ascending pitchfork with the upper median line (uml) of the minor descending pitchfork. A valid breakout through this confluence will signal a further increase on the short term, while a rejection will send the rate down again. I’ve said in the last days that only a valid drop below the ML and below the outside sliding line (sl) will confirm a larger drop. We’ll see what will really happen in the upcoming hours, but remains under some pressure.