The EUR/USD has increased in the first part of the day, but the Euro-zone data have bought a selling pressure because the figures have come in mixed, the currency pair has slipped below an important resistance level, if the rate will stay below this dynamic resistance, then we had only a false breakout last week, but we’ll have to wait for a confirmation that the rate will drop again.  The pair has increased today because the US dollar index has dropped sharply, the index is challenging an important support level right now and we have to be patient until we’ll have a clear direction.

The rate has reached fresh new highs in the last week when has touched the 1.1365 level, has found temporary resistance there and now has failed to reach this level again, a failure to close above the major lower median line (LML) of the major ascending pitchfork will attract more buyers on the short term, which will lead the rate down again. We have a very strong resistance area right above the lower median line of the ascending pitchfork, you can see that the 1.1342 and the 1.1376 are acting as very strong resistance levels.

You can notice that the rate has found resistance at the minor median line of the ascending pitchfork, today has failed to reach and retest this obstacle, has failed also to reach the 150% Fibonacci line (descending dotted line), so a short decrease could come till the rate will recapture enough energy to resume the upward movement. The rate could drop to retest the lower median line of the minor ascending pitchfork, actually the rate could be attracted by the confluence formed at the intersection of the lower median line of the minor ascending pitchfork with the upper median line of the descending pitchfork, the outlook remains bullish as long as the rate is trading inside the ascending pitchfork’s body. The EUR/USD could decrease only if the US dollar index will have enough energy to rebound in the coming period, otherwise the pair will climb much higher.