The pair drops like a rock and is almost to reach a dynamic support. Technically, it is somehow expected to take this out as the USDX is expected to increase further. The dollar index is trading in the green and is pressuring a very strong resistance area.

The rate has retested the broken support levels and have confirmed them as resistance. I’ve told you in my analysis that the rate should drop further in the upcoming period if will make valid breakdown below a few downside obstacles.

However, it remains to see how long this will be because we should have a minor rebound after the impressive sell-off. The Euro drop aggressively even if the Euro-zone data have come in better than expected. The German Trade Balance was reported at 22.0B in March, above the 19.9B estimate and above the 19.4B in the former reading period.

The USD rallied after the Fed Chair Powel Speaks. The US data should bring life on the EUR/USD later in the afternoon. The NFIB Small Business Index could increase to 105.2 points, the JOLTS job Openings could slip from 6.05M to 6.02M, while the IBD/TIPP Economic Optimism could decrease from 52.6 to 51.3 points.

You should be careful tonight because President Trump will speak about the Iran Deal, in Washington DC.

The EUR/USD has made a valid breakdown below the median line (ML) and below the median line (ml) of the minor red descending pitchfork. The next downside target will be at the inside sliding line (SL) where it can find temporary support.

A valid breakdown below this line will signal a further drop on the short term. The next downside target will be at the 50% Fibonacci line of the ascending pitchfork and the next one at the lower median line (lml) of the red descending pitchfork. Only a failure to stay below the median line (ml) will signal a potential rebound.