EUR/USD (a 4-hour chart)
The eurozone inflation release has not caused a strong reaction at the market. The CPI dropped to the level of 0.2% year on year, which coincided with the investors' expectations. The government bonds yields differential in Greece and Germany expands, indicating a high risk of "Greek issue". As it became known Greece declared default.
After a sharp jerk up 300 points the price is slowly correcting downwards. The corrective weakness allowed sellers to break and consolidate below the strong support level of 1.1150.
The price is finding the first support at 1.1050, the next one is 1.0925. The price is finding the first resistance at 1.1150, the next one is at 1.1260.
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 a downward 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 decreasing.
The potential decrease targets are two levels of support: 1.1050, 1.0925. The buyers need to break above 1.1150 for a steady growth. The way to the marks 1.1260, 1.1450 will be opened after this breakthrough.