EUR/USD dropped after the last day’s minor rebound and could touch a dynamic support again. It continues to move in range on the short term, but I really hope that will start a larger move very soon.

The USD appreciated versus all its rivals as the USDX has managed to bounce back. It is still too early to talk about a larger rebound on the dollar index because the index is still under massive selling pressure. The dollar index moves in range as well on the short term, it is located somewhere at the middle of this extended sideways movement, so we have to wait for a clear direction to be sure what will happen with the USD in the upcoming period.

The Euro was ruined by the Euro-zone Industrial Production, which it has dropped by 0.8% in February, even if the traders have expected to see a 0.1% growth. The indicator remained in the negative territory for the second month. The French Final CPI rose by 1.0%, matching expectations and the 1.0% growth in the former reading period.

The US Unemployment Claims were reported at 233K in the former week, higher versus the 231K estimate and compared the 242K in the previous reading period, while the Import Prices rose by 0.0%, failing to reach the 0.2% estimate or the 0.3% growth in the former reading period.

The rate failed to reach the 50% again and now slips towards the lower median line (lml) of the minor ascending pitchfork. A valid breakdown will open the door for more declines in the upcoming period. You should wait for a breakout from this pattern before you take action.

A further increase will be really confirmed only after the rate will jump and will stabilize above the 50% Fibonacci line (ascending dotted line). Right now is very important to see what will really happen with the USDX, which in my opinion is somehow expected to drop further.