The euro zone monthly inflation rate remained unchanged while the core CPI rose by 0.9% y / y. We believe that the contradictory nature of recent data may explain why the euro had not showed any activity. In addition traders are waiting for today’s ECB meeting. The Eurozone has not published any reports except for the Germany producer price index (0,5% against the forecasted 0,4%).
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.
There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement and form a “Golden Cross”. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a positive territory. The price is correcting.
We believe the growth will be continued now. The first target is the level 1.0925, the next are 1.1050 and 1.1150.