The price has posted humble gains today, has changed little and maybe you wonder when we’ll have a clear direction because the rate continues to move sideways. Right now is fighting hard to recover after the Friday’s massive drop, will be better to stay away from this pair because we don’t have any trading opportunity.

Remains to see what will happen on the USDX in the coming days, the index has slipped below the 101.00 psychological level today, but he could still jump above this level in the coming days. Personally, I still believe that the rate will move sideways on the short term before we’ll have a clear direction.

The Euro has managed to increase a little versus the greenback as the dollar was punished by the USDX’s drop, was supported also by the German PPI indicator, which has increased by 0.7% in January, beating the 0.3% estimate, has increased more also versus the 0.4% growth in December 2016. Unfortunately  for the Euro, the Euro-zone Consumer Confidence has decreased from -5 to -6 points, even if the estimate was -5, the pair has lost altitude after this release.

The rate has rebounded after the Friday’s impressive drop, has increased as the USDX has fallen today, continues to trade above the lower median line (lml) of the minor ascending pitchfork, could increase further if the dynamic support will hold. The next upside target remains at the upper median line (UML) of the descending pitchfork and at the sliding line (descending dotted line). Could approach and reach the mentioned resistance levels after the false breakout below the lower median line (lml) of the ascending pitchfork and after the failure to close right on the median line (ML) of the descending pitchfork.

The rate will increase only if the US dollar index will drop deeper again, the index could fall if will fail to climb again above the 101.00 psychological level, however a drop below the lower median line (lml) of the ascending pitchfork will open the door for more declines.

We’ll see what will happen because you can see that the price has developed an Inverse Head and Shoulders, but this potential pattern needs confirmation, the validation will come only if the rate will climb and will stabilize above the sliding line (SL).