We expect that the ECB to cut the rates further into the negative territory. In addition, investors predict that the Bank will expand its asset purchase program in an effort to overcome consistently low inflation levels in the Euro area. Meanwhile, the German's government bonds showed growth relative to their counterparts (the US and the UK) that will support the demand for the euro.
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 confirmed and a strong 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 and bounced downwards. If the pair breaks the level again the growth will be continued to 1.1150. Otherwise we will see a decrease to 1.0800.