We should pay attention is drawn to the April euro area industrial production report. The Old World leading economies manufacturing sector indicators showed mixed trends: Germany and Spain have reported about an increase while France reported about a decrease by 0.9%. The Markit Economics PMI is showing a moderately positive trend. The April PMI increased by 0.1% m/m and 0.8% y/y. The forecast was 0.4% m/m и 1.1% y/y.
After buyers failed to break through above the resistance level of 1.1260 (there was false breakthrough), the price declined downwards to the resistance level of 1.1150 where there is the sloping resistance line of 1.1260 breakthrough.
The price is finding the first support at 1.1260, the next one is 1.1150. The price is finding the first resistance at 1.1450, the next one is at 1.1675.
There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows an upward movement and from a “Dead Cross”. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a neutral territory. The price is growing.
The pair can grow to the resistance level of 1.1450. After breaking 1.1450 the buyers may go to 1.1675.