Price edges higher aggressively and seems unstoppable on the short term. Has climbed much above the 1.1909 previous high and now is very close to hit the outside sliding line (sl), where he may find temporary resistance. Is strongly bullish on the Daily chart, the current upside movement was expected after the USDX’s sell-off.

Technically was expected to increase further after the false breakdown below the 1.1712 static support, has rallied after the failure to retest the median line (ml) of the ascending pitchfork. The USD was punished by the Yellen’s speech, the FED Chair didn’t say anything about another hike or about the monetary policy, disappointing the USD bulls.

The rate rallies on the worse Euro-zone and on mixed United States data, the US Goods Trade Balance dropped further, from -64.0B to -65.1B, has come in worse than the -64.5B estimate, while the Prelim Wholesale Inventories rose by 0.4% in the previous month, beating the 0.3% estimate. On the other hand, the Euro-zone M3 Money Supply increased only by 4.5% in July, less versus the 4.9% estimate and compared to the 5.0% growth in the former reading period, the Private Loans surged by 2.6%, less versus the 2.7% estimate.

Price registered a significant jump on Friday, right after the Yellen’s speech. Has opened with a gap up in the morning, signaling that the bulls are in full control and should drive it towards fresh new highs in the upcoming days.

Remains to see how will react when will reach the outside sliding line (sl), a valid breakout will confirm a further increase, while a failure to reach it or a rejection will signal an exhaustion and a potential drop. The next major upside target will be at the 1.2042, should hit this level in the upcoming weeks if the USDX will slide further. The USDX is trading much below the 92.49 major static support, a further drop will ruin the USD, which will depreciate versus all its rivals on the short term.