The EUR index lost 4.08% at the beginning of the fourth quarter which is a positive factor on the euro zone net exports and will contribute to the production volume growth and the unemployment reduction in the medium term. The Germany and the US government bond yields reduction have supported the euro bulls.
Sellers tried to break through and consolidate below the strong support level of 1.0630. However the pair closed the trades above this level.
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 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 correcting.
The approach to the level of 1.1630 may lead to a price rebound upwards. The potential rebound targets are the resistance levels of 1.0730, 1.0800.