The euro enjoyed a moderate demand amid the Germany inflation positive report. The moderate wage and the energy prices growth with the unemployment reduction point out to the inflationary pressure growth in the Old World leading economies. The PMI manufacturing revised index by the Markit Eurozone fell to the level of 52.2 in May against 52.3 the previous month. The analysts’ forecast was 52.3. The ISM manufacturing index showed a growth to the level of 52.8. The dollar strengthened amid this data.
The euro was correcting against the US dollar. The price growth is on the higher volumes. However the pair decreased to the support level of 1.0925.
The price is finding the first support at 1.0925, the next one is 1.0790. The price is finding the first resistance at 1.1050, the next one is at 1.1150.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is decreasing.
We suppose the pair will go to 1.0790 first. Having overcome the first target the price might go downwards to 1.0670.Publication source