Forex Trading: EUR/USD another rally favored April 16, 2018

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The currency pair increased a little in the morning and tries to stay in the green territory. It moves in range on the short term as the USDX moves in range as well.

Personally, I’m expecting to see a significant move in the upcoming days. It remains to see the direction because the rate is trading near very important support and resistance levels. The USD could be ruined by a USDX drop, the index maintains a bearish perspective on the Daily chart.

The dollar index could move down after the failure to reach and retest some very important resistance levels. USDX stays below the 90.00 psychological level and could take out a dynamic support in the upcoming hours.

Technically, the USDX may drop below the 89.00 psychological level and could punish the greenback, which will lose significant ground versus its rivals. The German WPI will be released later and is expected to increase by 0.4% in the previous month after the 0.3% drop in the former reading period, but I don’t believe that will have a significant impact.

On the other hand, the United States data could bring life on the EUR/USD. The Retail Sales may increase by 0.4% versus a 0.1% drop in the former reading period, while the Core Retail Sales could increase by 0.2% in March. You should keep an eye on the economic calendar in the US session because the fundamental factors will take the lead.

Price moves in range and stays very close to the critical support levels. It maintains a bullish perspective as long as it stays above the lower median lineĀ  (lml) of the minor ascending pitchfork.

A valid breakout above the 50% Fibonacci line will confirm a further increase, the major upside target remains at the upper median line (UML) of the major black ascending pitchfork. A drop outside the minor ascending pitchfork followed by a lower median line (lml) retest will confirm a further drop on the short term. This scenario will take shape only if the USDX will jump higher again.

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