The currency pair increased a little in the morning and tries to recover after the last minor corrective phase. Technically, it could still increase after the last drop because is located near a very strong support area. Price increased as the USD was punished by the USDX’s drop, the index failed to stay near the 93.81 static resistance and now is located below the 93.50 level.  The USD could take the lead again only if the United States data will impress in the afternoon and if Janet Yellen will have a neutral or a hawkish speech tonight, otherwise the greenback will hit new lows versus its counterparts.

The BRC Shop Price Index dropped by 0.1%, less versus a 0.3% in the previous reading period. Moreover, the Services PMI increased from 53.2 to 53.6 points in September, beating the 53.2 estimate boosting the Cable. The price will be driven by the fundamental factors, only some positive data will force the USD to resume the upside movement versus its rivals.

The USD will take a serious hit if the ADP Non-Farm Employment Change will come in below the 131K  and if the ISM Non-Manufacturing PMI will fail to increase further.

Price increased and now is pressuring the 1.3268 broken static support, is somehow expected to increase after the failure to retest the outside sliding line (SL). However, you should know that the pair remains under selling pressure after the drop inside the ascending channel’s body, it could slip along the SL till will reach the confluence area formed between the 250% Fibonacci line with the sliding line (SL).

Only a drop below the 250% Fibonacci line will confirm a further drop in the upcoming period, while a rejection will send it towards the up sloping red line.

Is trapped within the 150% Fibonacci line and the 250% Fibonaci line, could move within this up channel in the upcoming period if the US data will disappoint later.