The EUR/USD has increased sharply today and has managed to jump above the 1.0684 last week high, has erased the yesterday’s high and looks determined to embrace new highs in the coming days. The rate has jumped above a very important dynamic resistance, signalling that the bulls are in full control and could lead the rate much higher. The dollar was weakened by the USDX’s drop, while the Euro has managed to increase even if the Euro-zone data have failed to impress today, actually the figures have come in mixed.

The Italian Trade Balance has decreased from 4.29B to 4.20B in November, but the surplus has remained much above the 3.84B estimate, while the German ZEW Economic Sentiment has increased from 13.8 to 16.6 points, but unfortunately has come below the 18.9 estimate. Moreover the ZEW Economic Sentiment has increased only from 18.1 to 23.2 points, even if the traders have expected to see an increase to 24.2 points.

The Euro has ignored the French Gov Budget Balance release, was reported at -93.3B, much lower versus the -85.5B in the previous reading period.

The price has increased and has jumped above the median line (ML) of the descending pitchfork, most likely will approach and reach the median line (ml) of the ascending pitchfork, where he may find temporary resistance. The current rebound was somehow expected as the price has started to make higher lows, the behavior has changed on the short term, but the sentiment remains unchanged as long as the price is trapped inside the descending pitchfork’s body.

The rate could be attracted now by the confluence area formed at the intersection between the upper median line (UML) with the median line (ml) of the ascending pitchfork, we’ll have a larger rebound only if the price will jump and will stabilize above the mentioned confluence area and outside the descending pitchfork’s body.

Remains to see how will react when will hit the mentioned resistance levels, is very important to see what will happen on the USDX in the coming days because a further drop will help the pair to increase further.