The rate increased a little today and tries to recover after the impressive sell-off. Price has reached a very strong dynamic support, so only a valid breakdown will confirm a further drop. EUR/USD bounced back as the USDX has dropped a little after the impressive rally.

The dollar index has reached a very strong dynamic resistance and now has turned to the downside on the short term.

Technically, the rate is expected to drop after the failure to make new highs and to stabilize above some very important resistance levels.

The Euro could increase a little after some good Euro-zone figures. The Final Manufacturing PMI increased from 56.0 to 56.2 points signaling that the expansion continues, the German Final Manufacturing PMI remains steady at 58.1 points, matching expectations, while the French Final Manufacturing PMI was reported at 53.8, much above the 53.4 estimate. The Italian Manufacturing PMI dropped unexpectedly, from 55.1 to 53.5 points, much below the 54.4 estimate, while the Spanish Manufacturing PMI decreased from 54.8 to 54.4 points, but it has decreased less compared to the 54.2 estimate.

The Italian Monthly Unemployment Rate increased from 10.9% to 11.0%, even if the traders have expected to see the indicator at 10.9%. The Euro-zone Unemployment Rate remains steady at 8.5%, matching expectations, the Italian Prelim GDP rose by 0.3% matching expectations and the 0.3% growth in the former reading period. Moreover, the Euro-zone Prelim GDP increased by 0.4% matching expectations.

The rate is pressuring the median line (ML) of the major black ascending pitchfork. We’ll have a valid breakdown if the USDX will resume the upside movement. A valid breakdown will confirm a broader drop in the upcoming weeks.Technically, it should drop towards the lower median line (LML) in the upcoming months. This scenario will take shape only if the USDX will start a major upside movement.