The EUR/USD edges higher and could hit new highs if will stabilize above 1.1650 psychological level, could approach the 1.1700 level if the USDX will drop much deeper in the upcoming period. The dollar index plunged aggressively in the last three hours and is located much below the 94.49 previous low, further drop is expected because is too heavy to be stopped.

USDX drops like a rock and looks unstoppable, could reach the 94.00 psychological level in the upcoming hours because has ignored a very strong support level.

I’ve said in the previous articles that we don’t have a reversal sign on the USDX and that we should be careful because could drop any time again and could for the greenback to drop further versus all its rivals.

The German PPI increased by  0.0% in June, even if the economists have expected to see a 0.1% drop, while the Euro-zone Current Account increased from 23.5B to 30.1B, beating the 23.3B estimate. Euro rallies post ECB, the European Central Bank maintained the Minimum Bid Rate steady at 0.00%, matching expectations.

The Euro-zone Consumer Confidence decreased further, from -1 to -2 points, despite that the traders have expected the indicator to remain steady at -1 points.

Price rallied and resume the latest gains, could hit fresh new highs as is strongly bullish on the short term. The next upside target will be at the upper median line (uml) of the ascending pitchfork, could reach this level if the USDX will slide further in the upcoming days.

Has managed to jump above the 1.1615 previous high and is targeting the 1.1712 next major static resistance. Could increase further after the breakout from the long term extended sideways movement, the perspective remains bullish as long as is trading within the ascending pitchfork.

We’ll have a buying opportunity only if will come back down to retest the broken levels, right now is better to stay away because we don’t have any trading opportunity. A selling opportunity is off the table at this moment because the USDX is too heavy.