The EUR/USD has extended the latest gains after the last week minor retreat, has opened with a gap up and has managed to climb above the 1.0900 psychological level. Should increase further because has become strongly bullish, the sentiment has changed on the short term, so we can see a larger rebound in the coming weeks.

However, the rate could decrease a little these days because could try to close the morning gap, but the perspective remains bullish even if we’ll have a minor decrease. Has jumped higher as the USDX has plunged aggressively today, the index has fallen much below the 99.00 psychological level. The USDX has recovered a little in the last hours and now is pressuring the 99.12 static support, a further drop will send the greenback much lower in the coming days versus its rivals.

The Euro has increased significantly on the mixed Euro-zone data, the German Ifo Business Climate increased from 111.1 points to 112.3 points, beating the 111.2 estimate, while the M3 Money Supply surged by 4.7%, less versus the 4.9% estimate and less versus the 4.8% growth in the previous reporting period. The Private Loans surged by 2.3%, matching expectations, has increased more versus the 2.2% growth in the previous reporting period.

You can see on the Daily chart that the rate has opened with a gap up and has jumped much above the 1.0824 last week’s high. Has rallied aggressively, but has failed to touch the 1.0910 static resistance, but he could reach this level in the coming days as the perspective remains bullish in the short term.

Remains to see what will happen in the coming days because the rate could come back to close the morning gap before will climb much higher. The rate is expected to increase further in the coming weeks because the Inverse Head and Shoulders pattern was confirmed, technically the rate should increase more than 500 pips after the Neckline breakout.

The next important upside target will be at the median line (ml) of the minor ascending pitchfork, while the major upside target will be at the upper median line (uml).