Price dropped and reached fresh new lows in the morning, but failed to stay there and now is trading in the green again. The rate maintains a bearish perspective, despite the current increase because is trapped below an important dynamic resistance.

EUR/USD started to lose altitude again in the last hours, but we still need a confirmation that will drop much deeper in the upcoming period. Technically, it should drop further in the upcoming period, I believe that only the fundamental factors could force the pair to resume the upside movement.

We’ll see what will happen on the USDX in the upcoming days, the index maintains a bullish perspective on the short term despite the current drop. USDX could consolidate the latest gains and could try to recapture more directional energy before will climb much higher.

The Spanish Unemployment Change was reported at 27.9K in September, higher versus the 21.3K estimate, but lower versus the 46.4K in August. The PPI rose by 0.3% in August, beating the 0.1% estimate and the 0.0% growth in the former reading period.

The USD still needs further support from the United States economy, could receive a helping hand from the Total Vehicle Sales indicator, which could increase from 16.1M to 16.9M.

You can see on the Daily chart that the price has failed to retest the median line (ml) of the descending pitchfork and now has retreated from the 1.1773 today’s high. Should drop further if stays below the median line (ml) of the descending pitchfork.

The next downside targets will be at the lower median line (lml) of the descending pitchfork and at the lower median line (LML) of the ascending pitchfork. Actually, it could be attracted by the confluence area formed between the LML with the lower median line (lml).

The perspective remains somehow bearish on the Daily chart even if the rate will come higher and will retest the median line (ML) of the ascending pitchfork and the upper median line (uml) of the descending pitchfork.