The EUR/USD has changed little today, the traders area undecided on the short term and are waiting for a fresh new signal, the rate has increased a little as the USDX has slipped lower after the yesterday’s bullish run, we’ll see what will happen in the coming hours because the rate could approach again a strong dynamic resistance, could increase further as long as the 1.2000 psychological level remains intact, a drop below this static support will help the sentiment to change on the short term. Price is trading inside of an ascending channel, but the rate has failed to reach and retest the resistance of this chart pattern, signaling that the price has lost bullish momentum.
We’ll have to be patient to see how the rate will react after the Euro-zone and the US data will be sent to the public, the French Final CPI has failed to produce a surprise, has increased by 0.3%, matching expectations. The Euro-zone Industrial Production may drop by 0.8% and could ruin the EUR/USD gains, could drop again in the negative territory after just one month increase. However the United States Import Prices could drop by 0.1% in August, could punish the greenback, the currency could slide versus its rivals, the economic indicator could drop again after 5 –month increase.
The rate is still trapped between the sliding parallel line (ascending dotted line) and the lower median line of the major ascending pitchfork, the price has failed to reach again the LML, signalling that we could have another leg lower. We’ll have a selling opportunity only if the rate will drop below the sliding parallel line.
Technically the price should drop again because has failed to close above the short descending sliding line, right now is pressuring the upper median line of the short descending pitchfork, could drop below this obstacle if will stay too long here. A larger increase could come only if the rate will climb and stabilize above the short descending sliding line, the price is waiting for a bullish spark, but I’m not sure that will have one today.