The euro was supported by the euro zone consumer inflation strong indicators. Thus, the EU consumer prices rose up by 0.2% y/y in July while the core index showed an increase by 0.9% y/y against the expected 0.2% and 0.8%, respectively. In addition, the unemployment rate remained at the mark of 11.1%.
Buyers tried to continue the upward trend, but they were stopped by the resistance near 1.1050. The level testing was followed by an active rebound downwards on the increased volume. The rebound from the level of 1.1050 has allowed customers to consolidate below this level.
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 weak sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The upward 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 1.0925 first. Having overcome the first target the price might go downwards to 1.0790, 1.0670.