The EUR/USD has edged higher and has managed to climb above the 1.0650 previous high, has jumped above an important dynamic resistance, remains to see if this will be a valid or a false breakout. The pair has increased as the greenback was punished by the USDX’s drop, but the sellers have stepped in in the last hours and are dragging the rate down again, I want to remind you that the short term perspective remains bullish even if we’ll have a minor retreat in the coming days.

Could increase further if the USDX will close the day below the 102.54 horizontal resistance, the behavior has changed, but the sentiment remains unchanged as long as the rate is located below some important resistance level.

The USD has increased in the last hours, even if the United States economic data have come in mixed, the Unemployment Claims have increased from 237K to 247K in the previous week, but has come better than the 266K estimate, the Initial Claims remain below the 250K, which was good for the USD. Moreover the Import Prices rose by 0.4% in December, but have increased less versus the 0.8% forecast, while the Federal Budget Balance has disappointed as well, was reported at -27.5B, even if the estimate was -21.0B.

The rate has increased and has resumed the yesterday’s bullish candle, has climbed above the median line (ML) of the descending pitchfork, but wasn’t able to stay there, the sellers have forced the price to decrease and now is trading again below the ML.

The pair remains under pressure as long as is trading below the median line (ML), we’ll have a larger rebound only if the price will have enough directional energy to stabilize above this upside obstacle, could increase further as long as is trading inside the minor ascending pitchfork’s body, the behavior has changed when the rate has started to make higher lows, but the sentiment remains bearish as long as is trading inside the descending pitchfork’s body.