EUR/USD (a 4-hour chart)
The euro increased at the trades on Monday. Germany published the industrial production report. This index increased in April by 0.9% on the month basis after the revised decline by 0.4% in March. The increase was larger in April than it was forecasted by 0.5% and the highest increase in 2015.
We received the May US labor market report and it's time to sum up the outcomes. The private sector employment reached the level of 280 thousand that confirms the Fed forecast for the US economic recovery in the second quarter.
The price reduction from the resistance level of 1.1260 was followed by the support level of 1.1150 short-term breakthrough. However, buyers were able to buy out the price and return it above the mark of 1.1150. The resistance level of 1.1260 was tested.
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 downward movement and the Kijun-sen shows a downward movement and form a “Dead 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.
If the price fixates below the resistance level of 1.1260, it may continue the downward trend in the short term. The potential target is 1.1150.