The EUR/USD has jumped above the 1.0773 yesterday’s high, but has failed to stay there, the sellers have stepped in again and have driven the price down again, right now is testing a major broken dynamic resistance, remains to see if we had a valid or  false breakout.

The price has decreased a little today as the US dollar index has managed to rebound and to recover after the morning drop, the index is trading right above the 100.40 level, much higher than the 100.15 today’s low. Unfortunately the USDX’s rebound could be temporary before will drop again, a further drop will force the greenback to depreciate versus all its rivals in the coming period.

The Euro has decreased a little also because the Euro-zone data have come in worse compared to the economists estimates, the Trade Balance has fallen from 23.1B to 15.7B in January, much below the 22.3B estimate, moreover the Italian Trade Balance dropped from 5.73B to -0.57B, the indicator has fallen in the negative territory even if the traders had expected a decrease only to 3.45B. The USD has posted some gains even if the United States have failed to impress today, the data have come in mixed.

The rate decreased and now is testing the outside sliding line (descending dotted line), has finally jumped above this major upside dynamic resistance and most likely will start a broader rebound. A valid breakout above this level will change the sentiment, we should have a broader leg higher in the coming period as the USDX is under selling pressure.

We could have a great buying opportunity if the rate will come down to test and retest the major confluence area formed at the intersection between the lower median line (lml) of the minor ascending pitchfork with the sliding line (descending dotted line). Will increase further if will have enough energy to stabilize inside the ascending pitchfork’s body, the next important upside target will be at the 1.0910 static resistance, most likely will be attracted by the median line (ml) of the ascending pitchfork.