Price increased aggressively in the last hours as the USDX plunged after the morning increase. The perspective remains bearish on the EUR/USD despite the today’s rebound. Maybe the rate will come back only to test and retest the broken dynamic support before will continue to drop.

It is very important to see what will happen on the USDX, which is trading at 95.31 level after the morning drop.

The Euro increased even if the European Sentix Investor Confidence dropped from 14.7 to 12.0 points, much below the 13.8 estimate.

The USDX is trading in the red right now and has failed to approach and reach the upside 50% Fibonacci line again. The index failed to reach and retest the inside sliding line (sl), so it could still increase if it stays much above this line. A valid breakout above the 50% Fibonacci line it will announce a further increase and the USD’s dominance.

I’ve told you in the last weeks that the index could still try to approach and reach the upper median line (uml) of the major descending pitchfork, so the EUR/USD could resume the downside movement if this scenario will take shape.

The rate has dropped again below the median line (ml) of the minor ascending pitchfork and now is trying to retest it. It should drop further if it stays below the median line (ml). Maybe it could increase a little and could try to retest also the downside 50% Fibonacci line of the major descending pitchfork before will drop towards the LML.

Technically, it is somehow expected to decrease after the failure to stay above the 50% line of the descending pitchfork and after the failure to retest it.

Personally, I would like to see several retests of the median line (ml) or a failure to retest it before we can go short.