The rate drops like a rock on the short term and approaches a very important dynamic support. Price changed little today and it seems undecided. The perspective is still somehow bearish on the short term, but we still need a confirmation that it will drop towards fresh new lows.

The pair is still moving somehow sideways, but I really hope that we’ll have a significant move very soon. Maybe the rebound was only temporary because the rate has tried to retest the broken level before will continue to move down further.

Right now will be better to stay away because we don’t have an important trading opportunity.  The rate is trapped within some very important levels.

The UK’s BRC Retail Sales Monitor dropped by 4.2%, much more versus the 0.7% estimate and versus a 1.4% growth in the former reading period.

The French Industrial Production was released earlier and has come in much worse than expected. The indicator dropped by 0.4%, even if the specialists have expected to see a 0.4% growth after the 1.1% growth in the former reading period.

The Italian Retail Sales will be released later and are expected to increase by 0.1% in March versus a 0.4% growth in the former reading period.

The rate dropped after the failure to stay above the 50% level and above the fifth warning line (wl5) of the descending pitchfork. Price approaches the first warning line (WL1) of the ascending pitchfork. You can see that we had two false breakdowns in the last weeks. So, only a valid breakdown below the WL1 will signal and will confirm a further drop, at least till the 0.8620 former low.

However, a valid breakout above the WL5 will keep a bullish bias on the short term, but this scenario is less likely to happen because the pair is under massive selling pressure.