The euro remained under pressure after the ECB report which is considering the negative interest rates possibility at its December meeting.
Furthermore, the correction efforts are restrained by the fact that after the US Friday labor market strong publication the probability of the December Fed rate hike has risen and is 71.7% against 58% before the report publication. Probability of the January increase was 75.8% and 85.2% in March.
This fact supports the dollar and limits the growth rate. The pair did not grow to the level of 1.0800 and rebounded downwards. The pair broke through the support level of 1.0730.
The price is finding the first support at 1.0630, the next one is 1.0550. The price is finding the first resistance at 1.0730, the next one is at 1.0800.
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 consolidating.
We advise to short with the first target – 1.0630. When the pair consolidates below the first target, we can open deals to the level of 1.0550.