EUR/USD increased today and resumed the Friday’s bullish candle. Price is almost to reach a dynamic resistance level, we’ll see what will react when will hit this level. Technically is still under some selling pressure on the daily chart, but the rate increased as the USDX slipped lower today after another false breakout above the 93.81 static resistance.

A further USDX’s drop will force the USD to lose more ground versus the Euro and versus its other counterparts. It looks like that the EUR/USD has lost the bearish momentum on the short term, the pair has found strong support and now we may have another upside momentum.

The greenback slides on the short term as the USDX failed to stabilize above the 93.81 static resistance. The dollar index shows exhaustion signs on the short term, I’ve said in the previous days that the rate is losing the bullish momentum and could drop a little and could develop an Inverse Head and Shoulders pattern.

The Euro increased as the Euro-zone data have come in better than expected, the Sentix Investor Confidence surged from 28.2 to 29.7 points, beating the 28.6 estimate, while the German Industrial Production surged by 2.6% in August, exceeding the 0.9% estimate.

Price increased after the failure to drop below the 1.1661 former low and now is almost to reach the median line (ml) of the minor descending pitchfork. It could retest it and resume the downward movement, but a breakout above will announce an increase towards the upper median line (uml) of the descending pitchfork.

Could try to retest also the median line (ML) of the ascending pitchfork, the perspective remains bearish on the short term as long as the rate is trading within the descending pitchfork’s body. Only a breakout above the 1.2042 level will announce a further increase in the upcoming period.

Looks like that the price is developing a Head and Shoulders pattern, you can see that I’ve drawn the potential neckline (dotted line), only a valid breakdown below it will confirm a further drop.