The currency pair increased today, but the bulls seem a little exhausted on the short term after the impressive rally. We’ll see what will happen because the price is located in the buyer’s territory as the USDX plunged after the impressive rally.
Is very important to see what will really happen with the USDX in the upcoming days because a further drop and a valid breakdown below the 93.81 major static support (resistance turned into support) will punish the USD, which will depreciate versus all its rivals.
Price failed to make new highs signaling that the rebound could be completed, but is still premature to talk about this because the USDX is trapped right below a dynamic resistance.
The Euro received a helping hand from the Euro-zone data today, the Current Account was reported at 37.8B in September, much above the 30.2B estimate and above the 34.5B in August.
We’ll see what impact will have the US data later, the Building Permits are expected to increase from 1.23M to 1.25M, while the Housing Starts could increase from 1.13M to 1.19M in October and could lift the USD. The greenback needs serious support to be able to resume the upside movement, the USDX is very close stabilizing in the seller’s territory if the data will disappoint.
The rate increased, but stays much below the 1.1859 previous highs. Technically, it was somehow expected to approach and reach the upper median line (uml) of the minor descending pitchfork after the breakout through the confluence area formed between the median line (ml) of the minor descending pitchfork with the lower median line (lml) of the ascending pitchfork. Will climb towards the mentioned resistance level only if will stabilize somewhere above the 1.1800 psychological level.
The Wednesday’s spike up signaled that we may have another drop even at least to the lower median line (lml) of the ascending pitchfork. You can see that the current rebound invalidated the Head and Sholders pattern, we may still have one if the rate will stay below the 1.1879 highs (right shoulder).