EUR/USD decreased in the last hours and has erased the morning gains. Price is trading in the red right now, but maybe not for long because the USD could be punished by the USDX’s further drop. Technically, the dollar index could drop much deeper after the retest of a very strong dynamic resistance.

The dollar could decrease further despite some good economic figures. The US data have come in mixed today, but unfortunately, the dollar could slip lower versus all its rivals.

The ADP Non-Farm Employment Change was reported at 163K in August, much below the 195K estimate and below the 217K in the previous reading period. The Unemployment Claims dropped unexpectedly lower, from 213K to 203K in the previous week, even if the specialists have expected to see an increase to 214K. The Dollar was supported also by the ISM Non-Manufacturing PMI, which it was reported at 58.5, much above the 56.8 estimate and above the 55.7 in the former reading period.

Unfortunately for the dollar, the Factory Orders dropped by 0.8%, more versus the 0.5% estimate, the Final Services PMI dropped from 55.2 to 54.8 points.

EUR/USD continues to stay above the median line (ml) of the ascending pitchfork and maybe it will try to make a valid breakout above the downside 50% Fibonacci line of the major descending pitchfork. The false breakdown below the median line (ml) could send the rate higher.

However, the price could drop if we’ll have a valid breakdown below the median line (ml) and if it will fail to jump and stabilize above the 50% line of the descending pitchfork.

A further increase will take shape only if the rate will close and will stabilize above the 50% line of the descending pitchfork, but also it will approach and reach the 50% line of the minor ascending pitchfork.