The currency pair increased in the morning as the USDX slipped lower and tries to retest a dynamic support before will resume the upside journey. EUR/USD has found temporary support and now tries to recover after the last drop. However, the perspective remains bearish on the short term despite a minor increase. Is very important to see what will happen on the USDX  because has decreased a little in the morning, but maybe only to recapture some directional energy before will climb much higher.

The dollar index is to confirm an inverse Head and Shoulders pattern if will stay above the 94.30 level. Technically, the USDX is expected to increase towards the 97 level in the upcoming period as the Federal Reserve is expected to hike the rate in December.

As you already know, the FED maintained the Federal Funds Rate unchanged last night, but have left the door open for an increase at the next meeting. The Euro-zone is to release important data, but most likely the traders will wait for the US data before will make a decision. The United States Unemployment Claims could increase from 233K to 235K.

The currency pair increased after the failure to stabilize below the lower median line (LML) of the ascending pitchfork. Price is somehow expected to retest the minor black line, which represents the neckline of the Head and Shoulders pattern.

A retest of this line followed by a drop below the lower median line (LML) will signal a larger drop in the upcoming period. The rate could be attracted by the lower median line (lml) of the minor descending pitchfork if the dollar index will climb much higher again. Support can be found at the 150% Fibonacci line (ascending dotted line) as well. The perspective is bearish as long as the rate is trading below the median line (ml) of the minor descending pitchfork. Technically, it should drop more than 400 pips if the chart pattern will be confirmed.