The EUR/USD increased today and has managed to rebound after the yesterday’s bearish candle, has increased even if the US dollar index has posted humble gains. The dollar index has plunged aggressively in the yesterday’s trading session, if fighting hard to rebound, but is still under massive selling pressure.
The dollar index could drop further after a minor distribution, is located below the 99.12 broken static support, is on a declining path and I’m afraid that we’ll see a broader drop in the upcoming period if will close somewhere below the 99.00 psychological level. A further USDX’s drop will send the dollar much deeper versus its rivals, so we don’t have any rebound signs at this moment, the index could approach and reach the 97.58 static support in the upcoming weeks, we may have a rebound from there.
The Euro has received a helping hand from the Belgian NBB Business Climate increased from -1.6 to -0.8 points, has come in better versus the -1.4 estimate. The dollar goes down on the mixed United States data, has taken a hit from the CB Consumer Confidence, which has decreased from 124.9 points to 120.3 points in April, has dropped unexpectedly as the economists have predicted a decrease only to 123.7 points. The US New Home Sales surged from 587K to 621K in March, beating the 590K estimate, the indicator has reached the highest level since August 2016, but the dollar wasn’t impressed at all. Moreover the Richmond Manufacturing Index dropped to 22 points, from 22 points, has come in better versus the 18 point estimate, while the HPI rose by 0.8%, exceeding the 0.1% estimate, has increased move also versus the 0.2% growth in the former reporting period.

EURUSDdaily-1

Price edges higher and looks determined to hit fresh new highs on the short term, you can see that has deleted the yesterday's losses and now has managed to jump also above the 1.0910 static resistance. Should increase further because has failed to come down to close the immense gap up, has decreased a little, but the bulls are very strong and should lead the rate towards fresh new highs. The next upside target will be at the lower median line (lml) of the ascending pitchfork, where he could find temporary resistance again. We can enter long again, only if the rate will come down to test and retest the first warning line (wl1) of the minor ascending pitchfork.

EURUSDh4

You can see on the H4 chart that the price has come down in the yesterday's trading session, but has found strong support right above the 1.0828 downside obstacle. Now has broken above the 1.0910 static resistance level, we can buy only if will come and will retest the broken resistance level. We'll have a minor buying opportunity if will have a minor consolidation, but you will have to place the stop loss somewhere below the 1.0900 level.

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