The European currency has slightly appreciated against the dollar after last week's swift fall. Yesterday, the pair managed to rise to a level of 1.0620 and is trading at about 1.0565 currently.
Today we are waiting for news from the eurozone: Eurostat will release final statistics for consumer price index, though it will hardly influence the pair greatly as it is expected to remain the same. The pair is very likely to be supported by the release of ZEW indicators for Germany and the eurozone: business optimism indexes promise to grow greatly.
Support and resistance
On the daily chart, 10- and 20-period moving averages are below the price chart and directed downwards, which also confirms a downward trend. The MACD histogram is located in the negative zone and its volumes are increasing. The signal line is crossing the histogram from above, which is a signal to sell.
The nearest resistance level is at 1.0756, M10 moving average. Last week's high at 1.0857 is a powerful resistance level. A local low at 1.0460 may serve as support.
The current situation implies a further decline of the euro to new historical lows. Sell orders should be opened with a target at 1.0460. However, an upward correction to a level of 1.0720 is also possible; long positions should be opened within it.