The EUR/USD is fighting hard to stay higher even if the USDX is still trading in the red. Technically, has shown some exhaustion signs on the Daily chart, but you should know that the perspective remains bullish despite a minor drop.

Price is located in the buyer’s territory and should climb much higher if the dollar index will resume the downside movement. It seems like that the rate is consolidating on the short term, this could be an accumulation and the price will approach the 1.2537 previous high.

The dollar index remains under massive selling pressure on the short term, is trapped below some very important resistance levels (support has turned into resistance).

It remains to see how will react after the United States data will be sent to the public, I’ve said in the last weeks that the greenback needs strong support from the US economy to be able to increase again versus its rivals.

The Euro increased today on the mixed Euro-zone data, the Final Manufacturing PMI remained steady at 59.6 points, matching expectations, the German Final manufacturing PMI decreased from 61.2 to 61.1 points, while the Spanish Manufacturing PMI decreased from 55.8 to 55.2 points, much below the 55.7 estimate.

The European currency received support from the Italian Manufacturing PMI, which was reported at 59.0 points, much above the 57.7 estimate, the French Final Manufacturing PMI increased as well.

The rate failed to come down to retest the median line (ml) of the ascending pitchfork and the 50% Fibonacci line (ascending dotted line) and now is somehow expected to climb towards the upper median line (uml) of the minor ascending pitchfork.  The breakout above the 50% Fibonacci line has confirmed a further increase. Price it was somehow expected to decrease a little after the retest of the upper median line (uml) of the ascending pitchfork and after the failure to close near it.