Price dropped aggressively after the United States data were released, the greenback received a helping hand from the positive numbers. EUR/USD is in a corrective phase, but this will be temporary if the US will fail to jump and to stabilize somewhere above the 94.00 psychological level.
USDX rebounded on the short term and now is very close to hit a dynamic resistance. The dollar index rallied and erased the morning losses, but has found temporary resistance at the 93.91 level.
Is premature to say that we’ll have a larger rebound on the USDX, only further positive US data will help the greenback to dominate the currency again. USD was boosted by the US numbers in the afternoon, the JOLTS Job Openings increased from 5.70M to 6.16M in June, beating the 5.74M estimate, while the NFIB Small Business Index increased from 103.6 to 105.2 points, exceeding the 103.6 estimate, moreover the IBD/TIPP Economic Optimism increased from 50.2 to 52.2 points, beating the 50.6 estimate.
Price extended the sell-off, but was stopped by the 1.1711 static support, only a valid breakdown below this level will confirm a further drop. I’ve said in the previous days that the rate could start a minor consolidation above the 1.1711 downside obstacle till will reach and retest the median line (ml) of the minor ascending pitchfork. The minor correction is natural after the false breakout above the upper median line (uml) and after the failure to reach and retest the 50% Fibonacci line (ascending dotted line). A reversal could be confirmed only if will drop and will stabilize below the median line (ML) of the major ascending pitchfork.
