The currency pair continues to move in range on the daily chart and need a spark to be able to start a larger move in the upcoming period. EUR/USD increased a little today as the USDX dropped after the last day’s amazing rally. The dollar index is approaching a dynamic support line, a retest followed by a minor increase will force the USD to take the lead again, while another significant drop will force the greenback to lose ground versus all its rivals.

The currency market is moved more by the technical factors today because we have a very poor economic calendar. However, the Euro increased also because the Euro-zone data have come in better than expected, the Italian Prelim CPI rose by 0.4% in March, beating the 0.1% estimate and the 0.0% growth in the former reading period. The French Prelim CPI rose by 1.0%, exceeding the 0.8% estimate and the 0.0% growth in the former reading period, while the French Consumer Spending increased by 2.4%, more compared to the 2.2% estimate and after the 1.9% drop in the former reading period.

The USDX moves sideways as well on the Daily chart, a failure to jump above the 91.00 psychological level will force the rate to go down again, this situation will ruin the USD.

The rate failed to approach and reach the lower median line (lml) of the minor ascending pitchfork and now tries to increase again. You can see that the rate failed to retest the median line (ml) as well on Tuesday, signaling a drop towards the lml.

We’ll see what will happen on the USDX in the upcoming hours because a further drop will invalidate a larger rebound, so the EUR/USD could jump much higher again.

Maybe will be better to stay away from this pair because we don’t have any trading opportunity, but we’ll have one after the breakout from this extended range.