EUR/USD (a 4-hour chart)
We pay attention to the euro area first quarter positive GDP publication. The ECB soft monetary policy is starting to bear fruit. The euro low rate has increased the European products competitiveness outside the euro area which has grown the trade surplus. The export growth may lay a good foundation for the unemployment reduction and the consumer spending increase in the future.
The United States published the retail sales report for April – the data remained unchanged. The correction from the resistance level of 1.1260 turned upwards - towards the current trend.
The price is finding the first support at 1.1260, the next one is 1.1150. The price is finding the first resistance at 1.1450, the next one is at 1.1675.
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 an upward movement and the Kijun-sen shows a horizontal movement and form 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.
The potential increase targets are two resistance level of: 1.1450 and 1.1675.