DXY is looking very tired here and it is quite evident that the rally on this one week chart is losing steam. This can be seen in the indicator trendlines moving down against the price action. My money is on the Euro here to rebound fairly soon. It is indicating that it is builing up energy for a reversal.
However, when big reversals are about to happen there can be a short term spike before the collapse. The US dollar may move up quicky and send the Euro down through 113 in the short term. The Euro has been clinging to the support of the weekly 200 MA for sometime and the dollar may knock it off this perch but it would be a fake breakout and a catalyst for a euro rally in my opinion.
However, when big reversals are about to happen there can be a short term spike before the collapse. The US dollar may move up quicky and send the Euro down through 113 in the short term. The Euro has been clinging to the support of the weekly 200 MA for sometime and the dollar may knock it off this perch but it would be a fake breakout and a catalyst for a euro rally in my opinion.