We expect a downward movement.

Since the beginning Tuesday's trading session the dollar index began to strengthen and the dollar began to rise against a basket of major currencies. Wednesday's data showed a good condition and the growth of the US economy, despite the fact that US indices have weakened, while the yield on treasury bonds fell to 2.78%.

Today in Germany data was released, which showed a reduction in unemployment. It was even better than projected and amounted to -19k. However, this will not change the overall picture.

Due to increased corporate earnings in the US there is an increase in investment interest, especially with the new tax reform.

On the chart we see that the price is trading around the level of 1.23 and is trying to lower the Bollinger band level. We can certainly count on the local roll back prices. However, the trend RSI and MACD indicators are showing us sell signals.

Because of that, at the moment we assume that for overcoming the 1.23 level the price will continue to decline and the next level, in this case, will be 1.2240. We should place our goals near this level. Otherwise, the price can turn around and consolidate at the level of 1.2350.