The euro was near 1.1030 before the euro area business activity reports publication. The manufacturing activity index will be in the Europe and the United States spotlight. The ISM purchasing managers index will be closely studied, especially the employment sub-index as the market is monitoring the employment and inflation in order to understand what will be the Federal Reserve December decision. The euro growth will be restrained due to the ECB December further easing expectations.
The first support is at the level of 1.0925, the next one is at 1.0870. The resistance levels are 1.1050 and 1.1150.
We have a strong and confirmed sell signal. The price is below the Ichimoku Cloud. The pair is under the Chinkou Span. The Tenkan-sen is crossing Kijun-sen upwards; two lines are forming the “Dead Cross”. The pair will show the southern movement until it is below the Cloud.
The MACD indicator is in a neutral territory. The histogram is growing.
The resistance of 1.1050 limits the pair’s growth. We expect the pair to keep falling. The decrease targets are 1.0925 and 1.0870.