The EUR/USD has decreased significantly today and looks determined to reach fresh new lows till the end of the day. Is very heavy on the Daily chart, signalling that the bears have taken full control, price is very close to hit the 1.0600 psychological level, could take could take out this minor downside obstacle if the USDX will touch new highs till the end of the US trading session.
The rate has edged lower as the USDX has managed to stay higher and to resume the yesterday’s minor bullish candle, the index has increased considerably in the last hours and has reached the 101.80 level, a further increase will force the dollar to appreciate versus all its rivals. The US dollar index maintains a bullish perspective on the short term despite the Friday’s massive drop, right now is struggling to recover as the United States data have come in better today.
The dollar should increase further as the Federal Reserve is expected to increase the Federal Funds Rate from 0.75% to 1.00%, the FOMC Statement and the FOMC Press Conference could bring high volatility, so you should be very careful not to suffer a heavy loss. We’ll have a very busy day tomorrow as the economic calendar is filled with high impact data, the US is to release also the Retail Sales report along with the inflation figures. The fundamental events will bring life on the currency market, the pairs will be driven by the fundamental factors, remains to see the direction.
The USDX has rallied in the last hours as the United States economic data have come in better, the PPI rose by 0.3% in February, beating the 0.1% estimate, moreover the Core PPI surged by 0.3%, beating the 0.2% prediction.
On the other hand, the Euro has dropped on the mixed Euro-zone data, the German Final CPI surged by 0.6%, matching expectations, while the German Zew Economic Sentiment surged from 10.4 points to 12.8 points. The Euro-zone Industrial Production surged only by 0.9%, less versus the 1.2% estimate, while the Zew Economic Sentiment surged from 17.1 to 25.6 points.

EURUSDdaily-1

The rate has plunged in the last hours and looks determined to hit new lows till the end of the day, has managed to fall below the 1.0600 psychological level, signalling that the sellers are in full control on the short term. Price has found strong resistance right below the upper median line (UML) of the major descending pitchfork, technically should drop deeper after the false breakout above the upper median line (UML). The pair has failed once again to reach the sliding parallel line (descending dotted line), could be attracted by the confluence area formed at the intersection between the 1.0521 and the first warning line (wl1) of the ascending pitchfork.

EURUSDh4

Is going down like a rock after the rejection from the upper median line (UML) of the descending pitchfork, the retreat is normally because you can see that has failed to close right on the UML, technically, should be attracted by the median line (ML) of the descending pitchfork in the coming days, but remains to see what will happen after the FOMC.

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Olimpiu Tuns

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