Yesterday the world leading stock markets showed weakness that is a positive factor for the single European currency. The carry trade transactions will contribute to the euro demand as a funding currency. The debt market dynamics starts sending the bullish signal for the dollar.
The Forex market analysis is showing that the price continues the weak upward correction. The resistance level of 1.1260 was broken upwards.
The price is finding the first support at 1.1260, the next one is 1.1150. The price is finding the first resistance at 1.1420, the next one is at 1.1530.
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 horizontal movement and the Kijun-sen shows 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 correcting.
We advise to short with the first target – 1.1260. When the pair consolidates below the first target, we can open deals to the level of 1.1150.