The USD has managed to rebound in yesterday’s trading session and is fighting hard to stay in the green area after the last days drop. It remains to see what will happen in the upcoming days because we still need a confirmation that the USD will climb much higher versus its rivals.

The USD has increased somehow surprisingly after yesterday’s poor data. The Final GDP increased only by 3.4%, less versus the 3.5% estimate, the Core Durable Goods Orders dropped by 0.3%, even if the specialists have expected to see a 0.3% growth. The Final GDP Price Index increased by 1.8%, beating the 1.7% estimate, but the Durable Goods Orders increased only by 0.8%, less compared to the 1.6% estimate.

The Personal Income increased by 0.2%, less versus the 0.3% estimate, while the Core PCE Price Index increased by 0.1%, less compared to 0.2% estimate. The dollar has received support from the Personal Spending, which it has increased by 0.4%, more versus the 0.3% estimate and from the Revised UoM Consumer Sentiment, which it has increased from 97.5 to 98.3 points, exceeding the 97.6 estimate.

As you already know, the FED has increased the Interest rate from 2.25% to 2.50% on Wednesday as expected.

You can see that the USDX has decreased and has reached the upper median line (UML) of the descending pitchfork, but the yesterday’s aggressive increase could invalidate the breakdown below the SL1, below the 50% line of the ascending pitchfork.

Right now we have two false breakouts from the minor chart pattern, so we have to wait for a valid one before we open a trading position on the USD. The next days could be crucial for the USD because if the USDX will remain above the 50% line, then we may see another attempt to breakout above the 97.54 level.

Only a valid breakout above this level will signal a further increase towards the inside sliding line (sl1) of the major ascending pitchfork.

EUR/USD has failed to stay above the lower median line (lml) of the minor ascending pitchfork, above the 50% Fibonacci line and now it has reached the lower median line (LML) of the major descending pitchfork again.

I want to remind you that only a valid breakdown below the 150% line of the ascending pitchfork will announce a further drop towards the outside sliding line (SL) of the descending pitchfork, towards the 61.8% retracement level and towards the first warning line (wl1) of the ascending pitchfork.