EUR/USD (a 4-hour chart)
We received the ISM releases that are important for the US dollar. Now the traders’ attention will be focused on the April labor market release on Friday May 8th. The Eurozone and the US manufacturing sector business climate reports point out to the differential shift in favor of the euro area in March and April.
The prices decreased amid the low volatility and the low trading volumes. Having broken through the support level of 1.1150, sellers have opened the way to the strong support level of 1.1050. The strong support level of 1.1050 test was followed by the euro growth. The resistance level of 1.1150 was broken.
The price is finding the first support at 1.1150, the next one is 1.1050. The price is finding the first resistance at 1.1260, the next one is at 1.1450.
There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement. 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 may expect the growth towards 1.1260 further on we expect a fall.