During the past month to 52.3 from 52.5 previously fixed, the business activity index fell in the manufacturing sector in Germany. Economists expected the index over the past month would remain unchanged at 52.5. Moreover, the German paper show a decrease in the bond market, the yield to US and British colleagues. Against this background, the attractiveness of investments in the assets of the EU reduced.
On Thursday, the pair at reducing tested support level of 1.1150. However, in the second half of the day the price took a northern direction.
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 an upward movement and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a neutral territory. The price is correcting.
We recommend going short with the first target – 1.1050. When the price consolidates below the first target it may go to the level 1.0925.