The euro zone monetary authorities once again underlined that they were ready to go for the monetary policy further easing if necessary. However, the debt market dynamics is on the euro bulls side now: The German 10-year government bond yields are growing relative to their US and the UK counterparts.
The last week minimum of 1.0630 was updated. Sellers managed to update and consolidate below this mark. Until recently this support started to play the resistance role.
The price is finding the first support at 1.0550, the next one is 1.0420. The price is finding the first resistance at 1.0630, the next one is at 1.0730.
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 and the Kijun-sen show 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 consolidating.
We suppose the pair will go to 1.0550 first. Having overcome the first target the price might go downwards to 1.0420.