The currency pair has rallied and has resumed the yesterday’s bullish candle. Price is strongly bullish again as the USDX has plunged since the yesterday’s trading session and seems unstoppable on the short term. USDX is trading above the 93.10 level and could approach the 93.00 psychological level in the upcoming hours.

Technically, the dollar index should drop much deeper after the false breakout above the 93.81 static resistance and above a dynamic resistance. I’ve said in the yesterday’s reports that we may see the index at the 92.49 static support in the upcoming period, a further drop will punish the USD.

The Euro increased on the very good Euro-zone data, the Flash Services PMI increased from 55.0 to 56.2 points in November, beating the 55.3 points estimate, while the Flash Manufacturing PMI was reported at 60.0 points, exceeding the 58.3 estimate and the 58.5 in the former reading period. The economic indicators have signaled that we have a further expansion in the services and the manufacturing sectors.

The German Flash Manufacturing PMI surged unexpectedly, from 60.6 to 62.5 points, exceeding the 60.4 estimate, while the Final GDP rose by 0.8%, matching expectations and the 0.8% growth in the former reading period.  The French Flash Manufacturing PMI and the Flash Services PMI have beaten the expectations and have signaled a further expansion.

Price has found strong support on the lower median line (LML) of the ascending pitchfork and now has ignored the 50% Fibonacci line, which represented a string dynamic resistance. EUR/USD is approaching the upper median line (uml) of the minor descending pitchfork, where it could find temporary resistance again. The current upside movement is natural after the failure to approach and reach the lower median line (lml) of the minor descending pitchfork.

The pair failed to stabilize outside the ascending pitchfork’s body, so it could be attracted by the median line (ML) of the pitchfork. This scenario will take shape only if the price will breakout from the descending pitchfork’s body.