Investors closed the carry trade deals which support the demand for the euro as a funding currency. The two–year US Treasury bond yields, which reflect the investors’ expectations about the Fed interest rate, are declining which deprives the dollar support. Moreover, the US and the Germany government bond yields greatly reduced on Wednesday which will contribute to the demand for the euro. Now the commodity market dynamics is not on the bulls side: the oil and industrial metals quotations reduction has been stopped which is a positive factor for the US currency competitors.
The pair showed multidirectional trades yesterday. The pair was falling the whole day and stopped at the American session. The pair lost 120 points and stopped at 1.3800.
The first support is at the level of 1.1325, the second one is at the level of 1.1260. The resistance is at the level of 1.1410, the next one is at the level of 1.1530. The price resumed its upward movement.
We have a confirmed and a strong buy signal. The price is above the Cloud now and it is under the Chinkou Span. The Tenkan-sen shows horizontal movement, and the Kijun-sen is directed upwards. The pair keeps growing until it is above the Cloud
The MACD indicator is in a positive territory. The histogram is increasing.
The pair is still inclined to grow. Shall the pair keep growing it will reach the level of 1.1530 soon. The decrease target is at the level of 1.1325.