EUR/USD resumes the upside momentum and is almost to reach and retest a dynamic resistance. Is trading in the green as the USDX  slipped lower today. USDX dropped further and resume the last two day’s decreases, but continues to hover right above a major support area, we’ll see what the United States data will bring in the afternoon.

EUR/USD rebounded after a false breakdown, technically should climb much higher in the upcoming days, but you should be careful because has shown some exhaustion signs in the previous week. It maintains a bullish perspective because is trading in the buyer’s territory, but a failure to climb above the 1.2069 level will signal a reversal on the short term.

I’ve added the USDX’s chart to show you what could happen with the USD in the upcoming period. Right now is trading in the red and approaches the confluence area formed at the intersection between the 1505 Fibonacci line with the lower median line (lml) of the minor ascending pitchfork. A rejection from the mentioned confluence area will signal a reversal.

Price is somehow expected to retest the lower median line (lml) of the minor blue ascending pitchfork after the false breakout above the median line (ml). Actually has also failed to close right on the median line (ml), signaling an overbought.

Price increases ahead the US data release and is expected to reach and retest the upper median line (uml) of the minor ascending pitchfork. Technically could be attracted by the confluence area formed at the intersection between the upper median lines (uml) of the ascending and the descending pitchforks.

The current increase is natural after the false breakdown below the median line (ml) of the minor descending pitchfork. Price failed to close on the median line (ml), signaling that an upside momentum towards the upper median line (uml) of the descending pitchfork. Only a valid breakout above the mentioned resistance levels or through the confluence area will confirm a further increase. However, a failure to close above the 1.2069 previous high will signal another leg lower in the upcoming weeks.