The EUR/USD has decreased sharply right after the FOMC Minutes were released by the Federal Reserve, but has failed to reach the 1.0634 yesterday’s low. The drop was only temporary and now has squeezed and is trading near the 1.0668 yesterday’s opening price. Remains to see what will happen in the upcoming hours, but the bears seem exhausted on the short term, price has found strong support right above a major dynamic support.
Price action could give birth to another leg higher if the US dollar index will drop in the upcoming days, the index is fighting hard to close above the 100.56 static resistance. The USDX has climbed as much as 100.87, but has failed to stay there and now is located below the 100.56 resistance, a failure to climb and to stabilize above this upside obstacle could attract the bears, which will drive the rate towards new lows.
The greenback will depreciate versus all its rivals if the USDX will slip lower, however the USDX maintains a bullish perspective on the short term despite a minor retreat, a minor correction will be natural after the last week’s impressive rally.
The Euro has decreased in the afternoon as the Euro-zone has come in mixed, the Final Services PMI plunged from 56.5 to 56.0 points in March, the indicator has fallen unexpectedly as the estimate was 56.5 points. The German Final Services PMI remains on hold at 55.6 points, matching expectations, unfortunately the French Final Services PMI decreased from 58.5 to 57.5 points, even if the economists have expected the indicator to stay at 58.5 points, signalling that the expansion has slowed down. The Italian Services PMI indicator has disappointed as well today, dropping to 52.9, from 54.1 points, despite that the traders have expected to see an increase to 54.3 points, moreover the Spanish Services PMI dropped from 57.7 to 57.4 points, but has come better versus the 57.2 estimate.
On the other hand, the greenback has increased in the afternoon as the United States ADP Non-Farm Employment Change surged to 263K in March, has come much above the 184K estimate and above the 245K jobs in February. Unfortunately for the USD, the ISM Non-Manufacturing PMI dropped from 57.6 points to 55.2 points, the estimate was 57.0 points, the United States Final Services PMI report have disappointed as well, was reported at 52.9 points, much below the 53.1 estimate.

EURUSDdaily

Price has lost the bearish momentum, has found strong support right above the upper median line (UML) of the descending pitchfork and now is trying to break above the sliding parallel line (descending dotted line). I've said in my previous article that we could have a great buying opportunity if the rate will test the confluence area formed at the intersection between the UML with the warning line (wl1), but has failed to reach this area as the bulls have stepped in again. A buying opportunity could occur if will jump above the sliding line and if will come to test the confluence area formed at the intersection between the warning line (wl1) with the sliding line (descending dotted line).

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