Technically, the EUR/USD it is expected to drop further in the upcoming period after the aggressive breakdown below an important dynamic support. The rate is trading in the green today and seems determined to test and retest the broken dynamic support before will continue to drop on the short term.

The breakdown below the dynamic support was imminent as the rate has continued to stay near it and the pressure it. It has failed to rebound on the short-term signaling a high selling pressure.

Price increased despite some very poor economic data, the Euro-zone Retail Sales have increased by 0.3%, less versus a 0.4% estimate, the indicator has remained steady at 0.3% growth in June. The Final Services PMI decreased from 54.4 points to 54.2 points signaling that the expansion has slowed down.

We had poor data also from Italy, France and Germany, but the Euro has managed to increase versus the USD as the USDX has decreased in the last hours and has erased the morning gains. The dollar index is trading in the red right now and could fail to approach and reach a dynamic resistance.

EUR/USD has failed to get back towards the median line (ml) of the descending pitchfork signaling a high selling pressure on the Daily chart. It has managed to make a valid breakdown below the inside sliding line (SL) of the ascending pitchfork and now it is somehow expected to drop towards the lower median line (LML) of the ascending pitchfork.

Technically, it could be attracted by the confluence area formed at the intersection between the LML with the lower median line (lml) of the minor ascending pitchfork.

You should keep and eye on the economic calendar later as the US is to release high impact economic data. The Unemployment Rate, Non-Farm Employment Change, Average Hourly Earnings and the ISM Non-Manufacturing PMI could shake the price.