The EUR/USD has increased in morning, but has failed to reach the last week high from 1.1365 level, the pair has retreated a little in the last hour because the Euro-zone data has come mixed, actually the currency traders were disappointed by the poor data. The price is challenging a very strong resistance level, has jumped above this obstacle on the last Thursday, but has fallen under this resistance in yesterday’s trading session, we could see a further retreat if the rate will fail to jump above today’s high and above the previous high from last week.
The Euro-zone Flash Manufacturing PMI has dropped from 52.0 to 51.8 points in August, has come below the 52.1 points forecast, while the Flash Services PMI has increased from 52.9 to 53.1 points, exceeding the 53.0 estimate. Unfortunately for the Euro, the German economic data have disappointed, the German Flash Manufacturing PMI has dropped from 53.8 points to 53.6 points, signaling that the expansion is slowing down, moreover the German Flash Services has lunged from 54.4 to 53.3 points, has come in much below the 54.3 forecast.
The French data was come mixed as well, the Flash Manufactuirng PMI has dropped further and has reached the 48.5 points level, even if the economists have predicted a increase to 49.1 points, the manufacturing sector remains deep in the contraction area, while the French Flash Services has continued the expansion, the indicator as increased from 50.5 o 52.0 points, but the economic figures have failed to boost the Euro, remains to see what will happen n he coming hours after the Eur-zone Consumer Confidence will be released, the United States is to release the New Home Sales later, the indicator could drop from 592K to 575K, while the Richmond Manufacturing Index could drop from 10 to 6 points.

The rate is pressuring the lower median line (LML) of the major ascending pitchfork, has jumped above this obstacle, but the bears have dragged the rate again below this dynamic resistance, we could have a bearish movement if the resistance will hold at the breakout attempt, if the rate will stay below the mentioned resistance then we had only a false breakout in the last week. You can observe that the rate has found resistance at the median line (ml) of the minor ascending pitchfork, now could drop to retest the lower median line of the minor ascending pitchfork, the rate could be attracted by the confluence area formed at the intersection of the lower median line of the minor ascending pitchfork with the upper median line (uml) of the descending pitchfork.

Price has started to make lower highs, signaling that we could have another drop, but we have to wait for a confirmation before we make a decision here, the perspective remains bullish on the short term, so we need a fresh signal. The sentiment will change on the short term if the rate will fail to jump above the swing high from 1.1365 level.

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