Price decreased a little in the morning as the USDX has managed to increase a little in the morning, the index is struggling to stay above the 93.17 previous low. USDX is under massive selling pressure on the Daily chart and could drop further because we don’t have any reversal sign right now.
The greenback will lose more ground versus its rivals if the USDX will slip towards the 92.49 major static support, a drop towards this level is favored because I don’t believe that the US data will impress in the upcoming period.
The Euro may resume the upside movement if the Euro-zone data will come in better than expected, the German Retail Sales have increased by 1.1%, more versus the 0.1% estimate and compared to the 0.5% growth in the former reading period. We’ll see how the EUR/USD will react when the Euro-zone CPI Flash Estimate will be released, the indicator should increase by 1.3% in July, while the Core CPI Flash Estimate may increase by 1.1%, like in the former reading period. The Unemployment Rate will be released as well and could decrease from 9.3% to 9.2%.
Price is testing the broken dynamic resistance (wl7) and should retest also the 1.1711 static support (resistance has turned into support) as well. We may have a buying opportunity if the rate will consolidate above these levels, but I want to remind you that a failure to reach the upper median line (uml) of the ascending pitchfork will send the rate towards the median line (ml).
EUR/USD maintains a bullish perspective on the short term, so only a false breakout above the warning line (wl7) and above the 1.1711 level will signal another leg lower.
