EUR/USD jumped much higher on Wednesday deleting the Tuesday’s losses and now needs to stabilize above the broken dynamic resistance if will want to resume the upside movement. Price rallied today and the USDX plunged and resumed the bearish movement, but the index has failed to reach the 92.49 static support.
USDX squeezed a little in the last hours and forced the EUR/USD to slip lower, but unfortunately, the dollar index maintains a bearish bias on the Daily chart. Personally, I believe that the USDX could find strong support at the 92.49 downside obstacle and could increase again.
The price action could be influenced by the fundamental factors today, the economic calendar is filled with important economic reports. You should keep an eye on the calendar to see what will move the rate.
Price has managed to resume the upside movement and to jump much above the upper median line (uml) of the minor ascending pitchfork and above the 1.1845 previous high. Will increase further if will close above the upper median line (uml). Only a false breakout above the uml will signal an overbought and a potential drop.
I want to remind you that the next upside target will be at the 50% Fibonacci line (ascending dotted line), a failure to reach this level will send the rate tumbling on the short term. I want to remind you that the bias is bullish, only an impressive USDX’s rally will force the pair to turn to the downside.
