EUR/USD plunged aggressively and now is very close to take out an important support level and to confirm a chart pattern. Euro dropped as the fundamental factors have taken the lead, the Draghi’s speech was considered a dovish one, that’s why the European currency has depreciated versus all its rivals.

Euro has turned to the downside versus all its counterparts and could reach new lows in the upcoming period.  On the other hand, the greenback dominates the currency market as the dollar index erased the yesterday’s losses and climbed much above the 93.81 static resistance and above the 94.27 former high. The dollar index is trading at the 94.60 at this moment and most likely will confirm the Inverse Head and Shoulders pattern, which will announce a further increase and a USD dominance.

The ECB maintained the Minimum Bid rate on hold at 0.00%, matching expectations while the Spanish Unemployment Rate decreased from 17.2% to 16.4% and has come much below the 16.6% estimate, but unfortunately wasn’t enough to save the Euro from the downside.

The dollar received support from the Unemployment Change, which has increased from 223K to 233K and failed to reach the 235K estimate, while the Prelim Wholesale Inventories rose by 0.3%, less versus the 0.4% and versus the 0.9% in the former reading period.

The currency pair has dropped much below the median line (ml) of the minor descending pitchfork and now is pressuring the potential neckline (dotted line). The Head and Shoulders pattern will be confirmed only if the rate will close and will stabilize below the Neckline. Support can be found at the lower median line (LML) of the ascending pitchfork as well, but a further USDX’s increase will force the pair to drop further on the short term, we have an important downside target at the lower median line (lml) of the minor descending pitchfork.

A breakdown from the ascending pitchfork’s body  will confirm a larger drop, that’s why we have to be patient because right now we don’t have any trading opportunity.