The EUR/USD has fallen aggressively after the ECB Press Conference and has managed to slip below the 1.0854 yesterday’s low, now is pressuring an important dynamic support (resistance has turned into support), a valid breakdown will signal further drops. The dollar could appreciate significantly versus the Euro as the US dollar index looks ready to start upside ride.

The dollar redeems ground as the USDX has managed to climb above the 99.12 broken support, I’ve said in the previous yesterday’s articles that the index could increase again if will have enough energy to close and to stabilize above the 99.12 level, personally I would like to see a retest of this level before will climb much higher.

The dollar continues to be strong, even if the United States economic data have failed to impress, actually we had more dreadful data, the Unemployment Claims have increased from 243K to 257K in the previous week, even if the economists have predicted a drop to 241K, while the Core Durable Goods Orders dropped by 0.2% in March, even if the traders have expected to see a 0.4% growth. The Durable Goods Orders have increased only by 0.7%, less versus the 1.5% estimate, while the Goods Trade Balance dropped from -63.9B to -64.8B , but less versus the -65.2B estimate.

The US Pending Home Sales have disappointed as well, the indicator has dropped by 0.8%, more compared to the -0.6% estimate, actually has plunged versus the 5.5% growth in the previous reporting period. The greenback has received support, only from the Prelim Wholesale Inventories, which has dropped by 0.1%, even if the economists have expected a 0.3% increase.

Price has dropped and has resumed the yesterday’s bearish candle, now is challenging the lower median line (lml) of the descending pitchfork, only a drop below this will confirm another leg lower for the upcoming weeks. We still need confirmation that the USDX will start an important upside movement.

I’ve also drawn a potential Rising Wedge, the rate has touched the upside line again, but has failed to break above or to close right on it, signalling that a drop is imminent.