EUR/USD (a 4-hour chart)
The traders’ attention will be focused on the German ZEW index data publication. In March the ZEW current conditions index changed to 55.1 from 45.5 while the ZEW expectations index increased to 54.8 from 53.0. In addition the euro area data showed that the CPI came out with the + 0.6% m/m -0.3% y/y in February.
There was a corrective price rebound upwards from the support level of 1.0455 with the following level of 1.0550 breakthrough.
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 horizontal movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is correcting.
The upward bounce potential target is 1.0670. If the price falls it will get to 1.0420.