EUR/USD has posted humble gains today and it continues to move in range on the Daily chart. It is very important to see what will really happen with the USDX in the upcoming period. A USDX’s drop will send the EUR/USD higher again.
You can see that the USDX has failed to approach and reach the 97.54 static resistance and now is located much below the 97.00 psychological level. It has made a false breakout through the confluence area formed between the 50% Fibonacci line of the ascending pitchfork and the 150% Fibonacci line of the minor descending pitchfork.
It could drop towards the near term support levels before it will bounce again. It could come back to pressure the inside sliding line (sl) of the ascending pitchfork and the outside sliding parallel line (sl) of the minor descending pitchfork.
Only a valid breakout above the 150% Fibonacci line will signal a potential upside movement and the USD’s dominance.
EUR/USD failed to reach the first warning line (wl1) of the ascending pitchfork and now has managed to get back above the lower median line (LML) of the major descending pitchfork. It has also failed to reach and retest the outside sliding line (SL) of the descending pitchfork.
Personally, I believe that it will continue the downside movement if it will drop and if it will close below the 1.1234 former low. Maybe it will move in a range in the upcoming period, so will be better for you to stay away and wait for a fresh trading signal.
USD/JPY has climbed as much as 111.128 , but now it could decrease a little on the short term and could retest the lower median line (LML) of the ascending pitchfork. A retreat could understandable after the upside movement. A potential retreat could give us the chance to go long again on this pair.
It continues to stay away from the first warning line (wl1) of the descending pitchfork, which it represents a very important dynamic resistance.