EUR/USD is trading in the red on the short term and is expected to extend the sell-off. Is focused on correction right now, but remains how long this will be because the FOMC Meeting Minutes could force the rate to turn to the upside again.
Technically is expected to decrease further also because the US dollar index continues to stay above a broken dynamic resistance and above the 93.81 broken static resistance. We may have a minor decrease on the USDX these days, could come down to retest the broken resistance levels before will climb much higher.
The USD stays higher even if the United States data have disappointed earlier, the Building Permits dropped from 1.28M to 1.22M, while the Housing Starts have disappointed as well, have dropped from 1.21M to 1.16M, even if the traders have expected an increase to 1.22M.
The FOMC Meeting Minutes could bring a high volatility tonight, so you should be careful not to suffer a heavy loss.
Price is pressuring the 1.1711 major static support (resistance turned into support) and could drop towards the median line (ml) of the minor ascending pitchfork. A breakdown below the static support looks imminent after the failure to retest the upper median line (uml) of the minor ascending pitchfork. We’ll see what impact the FOMC Minutes will have tonight, because a disappointment will boost the currency pair.
The next major downside target is at the median line (ML) of the major ascending pitchfork, only a valid breakdown below this obstacle will confirm a reversal.
