The price has decreased significantly today as the US dollar index has rallied and has touched new highs, the pair looks very heavy on the short term. Has touched an important dynamic support again and remains to see what will happen in the coming hours.

The USD has managed to drag the rate lower as the USDX has increased as much as 101.62, is trading much above the 101.00 yesterday’s high, but unfortunately has failed to reach the 101.78 previous high. The US dollar index has rallied even if we didn’t have any economic data from the US.

The Euro has decreased somehow surprisingly as the Euro-zone data have come in better, the pair has squeezed a little in the last hours, but only because the USDX has slipped lower.

The European currency has ignored the Euro-zone amazing figures, the Flash Services PMI rose from 53.7 to 55.6 points in January, exceeding the 53.7 estimate, has reached the highest level since April 2011, while the Flash Manufacturing PMI surged from 55.2 to 55.5, even if the traders have expected to see a drop to 55.0 points.

The rate has fallen aggressively and now is located much below the lower median line (lml) of the minor ascending pitchfork, has fallen also below the median line (ML) of the major descending pitchfork, but has failed to close below this level, actually has touched the confluence area formed at the intersection between the median line (ML) with the sliding line (minor ascending dotted line). I’ve said in my previous articles that the perspective remains somehow bearish as long as the rate is trading inside the descending pitchfork’s body.

We’ll see what will happen in the coming days because looks like that the rate has formed an Inverse Head and Shoulders pattern, this pattern could be confirmed only if the rate will start to increase again in the coming weeks. Could come even to test and retest the major confluence area formed at the intersection between the median line (ML) with the second warning line (WL2) of the former major ascending pitchfork.