EUR/USD (a 4-hour chart)
The German consumers economic expectations have fallen for the third consecutive month to 16.6 points from 18.4 points in July, having added the GfK that despite the optimism decline; consumers are still waiting for the European economy growth. Meanwhile, the US and the Germany government securities credit spreads reduced yesterday which is a positive factor for the euro.
The upward trend continues its strengthening, having broken through the strong resistance levels of 1.1150 and 1.1260 on its way, now the price is trading above the latter level.
The price is finding the first support at 1.1260, the next one is 1.1420. The price is finding the first resistance at 1.1420, the next one is at 1.1530.
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 approach to the level of 1.1260 may lead to a price rebound upwards. The potential rebound targets are the resistance levels of 1.1420, 1.1530.