Price rallied aggressively in the yesterday’s session and has managed to climb above another upside target. The breakout needs confirmation because this could be a false breakout if the dollar index will find strong support and will bounce back.
EUR/USD is trading in the red right now as the USD is trying to recover after the yesterday’s massive sell-off. The greenback dropped further on the mixed United States data, has taken a hit from the Chicago PMI, which has decreased more than expected.
The minor decrease could be only temporary if the Euro-zone data will come in better later, the economic calendar is filled with high impact data. Price will be driven by the fundamental factors again, so remains to see the direction.
Price is testing the broken upper median line (uml) of the minor ascending pitchfork, will increase further if will manage to stabilize above this dynamic resistance. Only a false breakout above the upper median line (uml) will signal an exhaustion and a potential minor decrease.
Has jumped much above the 1.1712 long term static resistance, personally I’m still expecting to see a retest of this broken obstacle. We may have a buying opportunity if the rate will consolidate above this level.
The next upside target will be at the 50% Fibonacci line (ascending dotted line) of the major ascending pitchfork, it will reach this level if the United States data will disappoint again in the afternoon. You should be careful today because we may have a high volatility caused by the US reports.
The greenback needs a strong bullish spark to be able to shine again, it will turn to the upside if the US data will impress in the US session.
