The USD has resumed the corrective phase as the USDX has reached new lows. A USDX’s further drop will force the dollar to lose more ground versus its rivals. USD needs a strong support to be able to get back in the green.
The dollar has posted humble gains today versus the GBP and versus the Euro as the USDX has increased a little.
We’ll see what will happen in the afternoon when the US is to release the Unemployment Claims, the indicator could decrease from 231K to 226K. The Fed Chair Powell will speak at the Economic Club of Washington DC.
USDX has slipped below the inside sliding line (sl) of the ascending pitchfork and below the inside sliding parallel line (SL) of the major descending pitchfork and it was almost to reach the median line (ml) of the ascending pitchfork.
I’ve told you in the previous days that a valid breakdown below the sliding lines (sl, SL) could signal breakdown below the median line (ml) as well and could signal the USD’s crash. Maybe the index will come back to test and retest the broken lines before will drop much deeper.
Right now only a false breakdown below the median line (ml) could announce a potential bullish momentum. It is hard to believe that the rate will invalidate the breakdown below the sliding lines, but a false breakdown will really announce a significant upside movement.
EUR/USD has registered an important upside movement in yesterday’s trading session, today has resumed the upside movement, but the gains have vanished on the short term. Price was almost to reach the downside 50% Fibonacci line of the minor ascending pitchfork.
I’ve told you in the previous report that a valid breakout above the lower median line (lml) will signal a further increase towards the 50% Fibonacci lines. We’ll see how the rate will react when it will reach these upside obstacles.