The debt market dynamics shows the lack of the euro demand. The Greece and Germany negative bond yields significant increase amid the lack of compromise between Athens and creditors increases the risks for the euro. On the other hand, the "black gold" decrease has a positive impact on the US dollar. These two factors are negative for the European currency. However, the US dollar will not be always in demand.
The pair euro/dollar has been correcting for the third consecutive week. Two previous levels of 1.1260 breakthrough were followed by the short-term prices rebounds downwards.
The price is finding the first support at 1.1150, the next one is 1.1050. The price is finding the first resistance at 1.1260, the next one is at 1.1450.
The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement and from a “Golden Cross”.
The MACD indicator is in a neutral territory. The price is decreasing.
The approach to the level of 1.1260 may lead to a price rebound down. The potential rebound target is the support level of 1.1150.Publication source