The currency pair rallied in the yesterday’s trading session and closed above a major static resistance, but the bears strike back and have managed to push the price down again. EUR/USD opened with a gap up in the yesterday’s morning, the rate is trying to close this gap right now, but remains to see if the sellers will be strong enough to take the full control.

The USD has dragged the rate down only because the USDX has managed to rebound and to recover after the today’s gap down. USDX is trying to close the gap, but remains under massive selling pressure on the Daily chart.

The Euro-zone data have come in mixed today, the German Unemployment Change was reported at -29K in November, much lower versus the -13k estimate and compared to the -20K in the former reading period, while the Spanish Unemployment Change was reported at -61.5K, much below the -58.7K estimate and versus the 7.3K in the former reading period.

On the other hand, the USD received support from the United States data, the ISM Manufacturing PMI increased from 59.2 to 59.7 points, beating the 58.1 estimate, the ISM Manufacturing Prices were reported at 69.0 points, higher versus the 64.8 estimate and versus the 65.5 estimate, while the Total Vehicle Sales were reported at 17.9M, much above the 17.5M estimate.

The rate has increased in the last period and has managed to breakout above the upper median line (UML) of the major blue descending pitchfork. EUR/USD upside momentum was paused by the 1.2042 static resistance, only a false breakout will signal another drop on the short term.

The upside movement was expected after the retest of the median line (ML) of the ascending pitchfork, now it could be attracted by the median line (ml) of the minor black ascending pitchfork. The perspective remains bullish on the Daily chart, so a valid breakout above the 1.2042 will confirm an increase towards fresh new highs.