The rate has plunged today and has touched new lows, has fallen much below the 113.00 psychological level and now is very close to hit a very important dynamic support. Will resume the bearish movement if the price will ignore the dynamic support, the greenback has continued to drop as the US dollar index has dropped sharply today and has taken out the 100.72 static support, the index maintains  a bearish perspective on the short term, could drop a little lower, forcing the dollar to drop much deeper versus the other major currencies.

The pair could drop as the Yen is very strong on the short term, the Japanese currency was pushed higher by the Nikkei’s drop, the index has fallen much below the 18941 previous low and could approach even the 18400 -18300 psychological levels in the coming period.

Technically, the price was somehow expected to drop further after the several false breakouts, maybe the Yen has increased as the Japanese Revised Industrial Production rose by 1.5%, matching expectations, actually has remained steady for the second month in November 2016. The dollar was weakened a little also by the Empire State Manufacturing Index, the economic indicator has decreased from 9.0 points to 6.5 points, has fallen much below the 8.1 estimate and has reached the lowest level of the last 2-months.

The rate has edged lower today and has ignored the static support from the 23.6% retracement level, nos is located much below this downside obstacle and is very close to hit the first warning line (wl1) of the ascending pitchfork. Could find support at the warning line, but a drop below this line followed by a retest will open the door for more declines , we’ll have a perfect selling opportunity if the rate will come back to test the confluence area formed at the intersection between the 23.6% retracement level with the first warning line (wl1).

We have a major downside obstacle also at the first warning line (WL1) of the previous major descending pitchfork, will reach this line if the rate will resume the bearish momentum.