The pair has managed to increase today and to recover after the yesterday’s drop, is somehow expected to increase further as the dollar is weakened by the USDX’s drop. Is challenging a strong dynamic resistance, a valid breakout above this line will attract more buyers, which will drive the rate towards fresh new highs in the upcoming period.
We may have a great buying opportunity these days, so we should keep an eye on this pair because probably we can go long on this pair again if we’ll have a retest of the broken dynamic resistance. The perspective is bullish on the short term, so a further increase is favored also because the USDX is expected to drop deeper in the upcoming period.
The dollar index has touched new lows today, could slip below the 96.50 psychological level in the upcoming hours, a further drop will force the greenback to drop much deeper in the upcoming period. Technically, the USDX is expected to drop much deeper in the upcoming days because has slipped below the 96.79 previous low, the current bearish movement is natural after the false breakout above the 97.58 static resistance.
The Euro has increased on the mixed Euro-zone data, the Retail PMI indicator dropped from 52.7 to 52.0 points in May, while the Retail Sales have disappointed because have increased only by 0.1% in April, less versus the 0.2% estimate. Moreover the Sentix Investor Confidence increased from 27.4 to 28.4 , beating the 27.6 estimate.
The greenback stays lower even if the United States JOLTS Job Openings have increased from 5.79M to 6.04M in April, the economic indicator has come unexpectedly higher, despite that the traders have expected to see a drop to 5.65M. Price will be driven by the technical factors tomorrow as we have a poor economic calendar, the dollar could drop much deeper on the lack of US high impact data, personally I believe that only some good economic numbers will save the currency from the downside.

Price has increased and has climbed above the fourth warning line (WL4) of the major descending pitchfork, more buyers will involve if we'll have a valid breakout above the mentioned dynamic resistance. The perspective remains bullish as long as the rate is trading within the ascending pitchfork's body, we'll have a buying opportunity if the rate will close above the WL4 and if will retest this level, Could also retest the lower median line (lml) of the ascending pitchfork before will climb towards new upside targets, is somehow expected to be attracted by the median line (ml) of the ascending pitchfork if will stay inside the ascending pitchfork's body.


Price has consolidated right below the WL4 resistance and now is fighting hard to close above this upside obstacle, we have to wait to see if we'll have a valid breakout or not, we'll see in the upcoming hours if will have enough directional energy to close above the 1.1284 previous high.

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