The improved European investors’ sentiment, the widespread dollar strengthening, as well as unfavorable economic reports helped the euro to weaken. The January Sentix investor confidence index surfaced a drop from 9.6 to 15.7 against the expected value of 12.2. In general, the euro position remains fragile in light of the ECB and the Fed policies divergence, as well the US and the Eurozone different statistics.
The first support lies at 1.0800 and then at 1.0730. The first resistance stands at 1.0925, the next one is at 1.1050.
The price is in the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows an upward movement.
The MACD indicator is in a neutral territory. The price is correcting.
The price is likely to go downward to the support levels of 1.0800 and 1.0730.