The EUR/USD increased a little today and resumed the yesterday’s bullish candle. Price is pressuring an important dynamic resistance, we’ll see what will really happen in the upcoming hours because another false breakout will signal an exhaustion and a potential drop.

The rate increased as the USDX has dropped again today, technically, the EUR/USD should climb much higher, but remains to see what will happen with the dollar index in the upcoming days. USDX is under massive selling pressure, but it could start a rebound if stays above the 90.13 Wednesday’s low.

The Euro could increase on the short term as the Euro-zone have come in better versus the last reading period. The German PPI increased by 0.2% in December, matching expectations and beating the 0.1% growth in the previous reading period, while the Current Account increased from 30.8B to 32.5B in November, beating the 31.3B estimate. The greenback needs strong support from the fundamental factors to be able to increase again. We have a poor economic calendar today, the US will release only the Prelim UoM Consumer Sentiment and the Prelim UoM Inflation Expectations, but I don’t believe that will bring anything serious.

You can see on the Daily chart that the rate has made a false breakout above the 50% Fibonacci line (ascending dotted line) which represents a crucial upside obstacle, a valid breakout above it will confirm a further increase in the upcoming weeks. Price has come back and it is pressuring this line, we’ll see what will happen in the upcoming hours because we may have another false breakout.

A drop below the median line (ml) of the minor ascending pitchfork followed by a retest of the dynamic resistance levels will signal a minor drop at least till the lower median line (lml) and towards 1.2042 static support.

We may have a buying opportunity if the rate will close above the 1.2322 previous highs, the first upside target will be at the upper median line (uml) of the minor ascending pitchfork.