The stock markets negative dynamics supported the demand for the euro as a funding currency. The US private sector ADP employment data was the highlight of the day. The ADP release was worse than the consensus forecast – the euro received a short-term support. The data came lower than expected 201 thousand. The number of employees amounted to 190 thousand.
Meanwhile the euro/ dollar pair continued its correction. However the pair could not fixate above the broken resistance level of 1.1260 and the trades closed below this level.
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 1.1325.
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 shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Golden 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.
The potential decrease targets are two levels of support: 1.1150 and 1.1050.Publication source