The EUR/USD dropped aggressively in the morning, managing to hit new lows, but unfortunately the sellers weren’t strong enough to hold the price down. The bulls are still in the game and have taken the lead from the start of the European trading session and have pushed the rate much higher, has climbed as much as 1.1204 level, where has found strong resistance.
The dollar has lost significant ground in the second part of the day because the US dollar index has plunged aggressively, erasing the morning impressive gains. The USDX has increased in the early morning and has managed to jump much above the 97.58 static resistance, but has failed to stay there and now is trading much below this upside obstacle.
The Dollar index is pressuring a major dynamic support, a valid breakdown will open the door for more declines in the upcoming period, the dollar will depreciate versus all its rivals if this scenario will take shape.
I’ve said in the last articles that the greenback is under pressure as long as the USDX is located below the 97.58 static resistance, the index had found temporary support, but is premature to say that we’ll have a larger rebound on the short term.
The Euro has managed to increase even if the Euro-zone data have failed to impress today, the Spanish Flash CPI increased by 1.9% in May, less versus the 2.1% estimate and versus the 2.6% growth in the previous reporting period, the French Prelim GDP surged by 0.4% in first quarter, more versus the 0.3% estimate and versus the 0.3% growth in the former reporting period. Moreover the French Consumer Spending rose by 0.5%, less versus the 0.8% estimate, while the German Import Prices dropped by 0.1% in the last month, even if the traders have expected to see a 0.2% growth, the German Prelim CPI dropped by 0.2% in May, more compared to the 0.1% estimate and versus the 0.0% growth in April.
The dollar is trading in the red as the United States data have come in mixed in the afternoon, the CB Consumer Confidence dropped from 119.4 points to 117.9 points, even if the specialists have forecasted an increase to 120.1 points. The Personal Spending and the Personal Income have surged by 0.4%, matching expectations, while the Core PCE Price Index rose by 0.2%, beating the 0.1% estimate

EURUSDdaily-2

Price has extended the sell-off in the morning and has fallen below the lower median line (lml) of the minor ascending pitchfork and below the 1.1123 static support, but the buyers have sent the price inside the ascending pitchfork's body, the perspective remains bullish as long as is trading within the ascending pitchfork's body. We could have a buying opportunity if the rate will retest the lower median line (lml), the major upside targets will be at the median line (ml) and at the upper median line (uml) of the minor ascending pitchfork. Could find resistance also at the fourth warning line (WL4).

EURUSDh4-1

A selling opportunity will appear only if the rate will decrease and close below the median line, a retest of the lower median line (lml) will bring a good selling opportunity with a first downside target at the warning line (wl1). Support can be found also at the third warning line (WL3), could approach this level after the failure to reach the WL4.

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