This week ECB meeting is the key event. The regulator is expected to increase the negative rate and will announce additional measures to stimulate the economy. Industrial production in Germany for January supported the euro. The index came in better than it was expected. The index rose by 3.3% against the expected 0.5% after falling 0.3% in December. This is the most significant growth rate since November, 2014.
The first support lies at 1.0925 and then at 1.0800. The first resistance stands at 1.1050, the next one is at 1.1150.
There is a non-confirmed and a weak buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement, the Kijun-sen shows a horizontal movement forming a “Golden Cross”. The upward movement will be continued until the pair is above the Cloud.
The MACD indicator is in a positive territory. The price is growing.
The euro reached the target of 1.1050. If the pair stays above the level the growth will be continued to 1.1150. Otherwise we will see a decrease to 1.0800.