The ECB meeting on monetary policy was the main event yesterday. The deflation threat again stands over the Eurozone economy. The euro area showed a CPI decline by 0.2% in annual terms at the end of February. The regulator decreased the rate that may support the pair in a short-term.
The first support lies at 1.1150 and then at 1.1050. The first resistance stands at 1.1260, the next one is at 1.1350.
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.
We expect a bounce downwards to the level 1.1050 after which the pair shall return to the north direction. The growth targets are 1.1260 and 1.1350.