The USD decreased again, even if the FOMC has decided to hike the interest rate again. Technically, the dollar could drop sharply in the upcoming period as the USDX has failed to stay higher. USD has decreased versus its rivals and this could be only the beginning of a larger drop.

The dollar could start a broader corrective phase if the dollar index will make a valid breakdown below the near-term support levels.

USDX decreased in the last hours despite some good US figures. The Average Hourly Earnings increased by 0.4%, beating the 0.3% estimate and the 0.2% growth in the former reading period, the Non-Farm Employment Change was reported at 312K, much above the 179K estimate and versus the 176K in the former reading period, but unfortunately the Unemployment Rate has increased unexpectedly from 3.7% to 3.9%, even if the specialists have expected to see the rate steady at 3.7%.

You can see that the USDX has managed to breakdown from the minor chart pattern, has pressured the upper median line (UML) of the major descending pitchfork and now has come back to confirm and to validate the breakdown from the minor chart pattern and below the upside 50% Fibonacci line of the major ascending pitchfork.

The current drop is natural after the several failures to breakout above the 97.54 static resistance and to retest the inside sliding line (sl1) again.

The next period could be crucial because it approaches the UML. A valid breakdown below this downside obstacle will signal a potential breakdown also below the inside sliding line (SL) of the descending pitchfork and below the inside sliding line (sl) of the ascending pitchfork.

We may have another upside movement as long as the rate will stay above the mentioned near-term support levels.

EUR/USD is still trapped within the 150% line and the lower median line (lml) of the ascending pitchfork. It seems that the behavior has changed as the rate has started to make higher lows. I’ve told you that we may have another upside movement if the rate will stay above the 150% line, above the 1.1301 level and if it will fail to approach and reach the outside sliding line (SL) of the major descending pitchfork.

As you can see, the rate has also failed to stay above the median line (ML) of the descending pitchfork, so we have a lot of signals that we may have a significant upside movement. Only a valid breakdown below the 150% line could invalidate this.