There was not published any important macroeconomic statistics. The single European currency has been under pressure for the last three trading days and we expect some short positions profit taking. However, we cannot count on the euro significant growth.
Last week the ECB President Mario Draghi said that inflation would remain low in the short term and we may expect a moderate growth only at the end of the year. Low inflation is traditionally a negative factor for the currency.
Having broken the strong support level of 1.0925, sellers lowered the price by only 100 points. The low volatility indicates towards the imminent upward correction. An additional signal for the upward correction formation is in favor of divergence volumes.
The price is finding the first support at 1.0790, the next one is 1.0670. The price is finding the first resistance at 1.0925, the next one is at 1.1050.
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 downward movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is consolidating.
The price is likely to go to the resistance level of 1.0925.