EUR/USD (a 4-hour chart)
The ECB announced the monetary policy meeting results – the regulator left the interest rates unchanged at 0.05% as in the month earlier. The QE program was launched on March 6 and now it is early enough to make conclusions. The energy market stabilization with the euro devaluation will contribute to the euro area lower deflation processes in the short term. The single European currency had been declining for six consecutive trading days and traders decided to fix part of the short positions.
The medium-term euro bearish trend moved into the side corridor near the levels: 1.0670 - 1.0550. Before reaching the support level of 1.0550 re-testing, the price had corrected upwards and is testing the resistance level of 1.0670.
The price is finding the first support at 1.0550, the next one is at 1.0420. The price is finding the first resistance at 1.0670, the next one is at 1.0790.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a downward movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is correcting.
We believe the growth will be continued now. The first target is the level 1.0790.