The dollar has decreased a little in the previous days as the USDX has dropped again. USDX has failed to resume the temporary rebound and to reach the near term dynamic resistance. It has decreased and now it is pressuring a dynamic support.
We’ll see what will really happen in the upcoming period because the USD could still increase as long as the USDX stays higher.
The dollar has taken a hit from the United States Prelim GDP, the indicator has remained steady at 3.5%, even if the specialists have expected to see a 3.6% growth.
It remains to see what impact will have the G20 Meetings on the USD, but as I’ve said, the perspective remains bullish.
USDX has come back to test and retest the outside sliding line (SL1) of the descending pitchfork after the failure to approach and retest the inside sliding line (sl1) of the ascending pitchfork.
The perspective will remain bullish as long as the rate remains above the upside 50% Fibonacci line of the ascending pitchfork. Maybe the rate has come down only to retest the SL1 and to confirm this line as a very strong dynamic support and now it will try to jump towards the sliding line (sl1).
A further increase will force the USD to dominate the currency market. EUR/USD decreased today, but it is still premature to talk about a significant drop as long as the rate is located above the near-term support levels.
EUR/USD decreased today and it could close the week below the lower median line (LML) of the major descending pitchfork. A further drop could be confirmed after a valid breakdown below the 150% Fibonacci line of the minor ascending pitchfork.
It remains to see what will happen because if the rate will fail to approach and reach the 150% Fibonacci line of the descending pitchfork, then we may have an important upside movement. If it will reach it, then we may have a potential breakdown.