The European consumer prices index has already been published. The growth rate decline was expected to 0.1% on the monthly basis which cannot please investors as Europe is on the brink of deflation. Data came out at the forecasted level.
The pair started its consolidation in the range, limited by the levels of 1.0800-1.0630. At first, it fell under the support level of 1.0730, but it soon returned above this mark. However the pair could not fixate above this level and the support level of 1.0730 was broken through downward.
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 downward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is decreasing.
We believe the downward movement will be continued now. The first target is the level 1.0630, the next one is 1.0550.