The pair euro/dollar increased on Tuesday. Earlier the dollar rose against the European currency as investors were preparing for Yellen’s speech. Everybody was guessing whether the Chairmen would give a hint regarding the next rate hike in the United States or not. The Eurozone and the United States monetary polices will continue to diverge as long as investors are confident in the Fed’s future rate increase. Meanwhile the euro will be supported by Mario Draghi’s statements that the rates are at the lowest limit.
The first support lies at 1.1260 and then at 1.1150. The first resistance stands at 1.1350, the next one is at 1.1450.
There is a non-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 and the Kijun-sen shows a horizontal movement forming 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 growing.
We believe the growth will be continued now. The first target is the level 1.3670, the next one is 1.1450.