The EUR/USD has rallied in the last hours and looks determined to hit fresh new highs in the coming days, the price has found strong support and now is fighting hard to recover after the las impressive drop. Has increased because the USDX remains under selling pressure. The USDX has decreased again in the last hours and has deleted the earlier gains, has fallen again below the 101.00 psychological level and could approach the 100.39 static support in the coming days, where is expected to find strong support.

The EUR/USD will increase in the coming days if the US dollar index will drop below the 100.65 yesterday’s low.

The Euro has received a helping hand  from the Euro-zone figures, the Spanish Flash CPI rose by 0.7% in November, beating the 0.5% estimate, actually has remained steady at 0.7% growth for the second month in November, the French Consumer Spending has increased by 0.9%, has come much better versus the 0.2% prediction. Moreover the German Import Prices have surged by 0.9% in October, exceeding the 0.6% forecast, has come also better than the 0.1% growth since September, while the German Prelim CPI rose by 0.1%, matching expectations.

The rate has found strong support right below the lower median line (lml) of the descending pitchfork, could increase further after the yesterday’s gap up, is expected to approach and reach the sliding parallel line (descending dotted line) and the median line (ml) of the descending pitchfork. I want to remind you that the perspective remains bearish on the short term as long as is  trading inside the descending pitchfork’s body. The rebound was somehow expected after the failure to close below the 1.0521 static support level, has failed also to stabilize below the lower median line (lml) of the descending pitchfork.  Right now is expected to increase because the USDX is into a corrective phase and is expected to drop much deeper, we’ll have a larger rebound only if the price will take out the resistance from the siding line and from the median line (ml).