Due to the lack of important macroeconomic statistics we shall pay our attention to the world's leading stock exchanges dynamics. Last Friday investors' attention was focused on two reports: the first euro area inflation estimate (the data came in at the forecasted median 0.4% y/y) and the US GDP Quarterly Report.
The fourth quarter US GDP preliminary data was expected with strong slowdown from 2.1% to 0.8% but it came in at the level of 0,7%.
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 non-confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a positive territory. The price is correcting.
It may continue the downward trend in the short term. The potential targets are 1.0800 and 1.0730.