The EUR/USD has increased today and could climb even higher after the last day’s crucial breakout, the rate has taken out a major dynamic resistance. Today has increased as the USDX has decreased again, actually the pair has dropped in the early morning, but has edged higher in the European trading session and has jumped above the 1.0804 yesterday’s high.
The dollar remains under selling pressure on the short term after the FOMC, has recovered a little in the previous days only because the USDX has found temporary support at the 99.55 level, but I’m afraid that will take out this minor support and will decrease further, could approach the 99.24 and the 9912 static support levels.
A further USDX’s drop will force the greenback will force the greenback to depreciate versus the other major currencies, personally I believe that will continue to drop till will reach a major support that will reject the rate.
The EUR/USD is moving somehow sideways and we still need a confirmation that the rate will resume the upside movement, has developed an Inverse Head and Shoulders, but this pattern awaits confirmation. The Euro has increased as the Euro-zone data have come in better today, while the dollar was punished by the US numbers in the afternoon.
The US Core Durable Goods Orders have increased by 0.4%, but less versus the 0.5% estimate, the indicator has come in better versus the 0.0% growth in the previous reporting period, while the Durable Goods Orders rose by 1.7% in February, more versus the 1.1% estimate. Moreover the Flash Manufacturing PMI dropped from 54.2 to 53.4 points, even if the traders have expected to see an increase to 54.9 points, signalling that the expansion has slowed down, while the Flash Services PMI dropped from 53.8 to 52.9 points in March, has come in much lower as the estimate was 53.9 points.
The Euro-zone flash Manufacturing PMI rose from 55.4 to 56.2 points in March, exceeding the 55.3 estimate, while the Flash Services PMI rose to 56.5 points, from 55.4 points, the traders have expected to see a drop to 55.4 points, the Euro has increased as the expansion continues in the manufacturing and services sectors. The German Flash Services PMI increased from 54.4 to 55.6, exceeding the 54.5 forecast, the indicator has reached the November 2015 high and has lifted the Euro, while the German Flash Manufacturing PMI has increased unexpectedly higher, was reported at 58.3 points, much higher versus the 56.6 estimate and versus the 56.8 in the reporting period.

EURUSDdaily-3

The price has increased again and has erased the yesterday's losses, has managed above the potential Neckline, if the inverse Head and Shoulders will be confirmed, then the price will start a larger rebound. The last two day's decrease was natural after the breakout above the sliding parallel line (descending dotted line) and above Neckline, has found temporary resistance at the lower median line (lml) of the minor ascending pitchfork. The sentiment has changed after the price has escaped from the descending pitchfork's body and after the breakout above the sliding line. However the rate could come even to test the warning line (wl1) before will take out the 1.0828 static resistance.

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