EUR/USD has finally started to drop on the Daily chart and it should approach and reach fresh new lows in the upcoming period. The USD has taken full control and is driving the rate down. As you already know, the dollar index has rallied and has jumped above very important upside targets.
USDX is trading above the 91.10 level, but is still trapped below a crucial dynamic resistance. A further increase will help the greenback to appreciate further versus all its rivals and not only versus the European currency.
The index has escaped from an extended sideways movement and now is somehow expected to increase further, but only after a minor decrease because he needs more directional energy.
The ECB Press Conference could bring a high volatility on the EUR/USD. You should be careful in the afternoon because the fundamental factors will drive the price. The United States is to release high important data as well.
The Minimum Bid Rate is expected to remain steady at the 0.00% historical low. A dovish speech will send the currency pair down very quick. The Spanish Unemployment Rate could drop from 16.6% to 16.3%, while the German Gfk Consumer Climate is forecasted to remain steady at 10.9 points.
EUR/USD has finally escaped from the symmetrical triangle and now drops towards the median line (ML) of the major ascending pitchfork. Personally, I believe that only a hawkish speech could turn the rate to the upside again.
The perspective has become bearish after the failure to reach new highs in the last weeks. The current drop is natural, it remains to see how large will be. Support can be found at the median line (ML) of the major ascending pitchfork, so only a valid breakdown below this line will signal a major drop in the upcoming weeks and months.
The failure to approach and reach the upper median line (UML) could send the rate below the median line (ML) in the upcoming period.