EUR/USD (a 4-hour chart)
The euro has looked less vulnerable and after differently directional trade fixed some losses against the dollar, but they were less extensive. The US economic data that did not please traders supported the euro and the euro zone economic statistics showed quite positive indicators’ results.
The sellers broke through the strong support level of 1.2600 amid the high volatility news last week. The level short-term test was followed by a slight price rebound downwards.
The price is finding the first support at 1.2500, the next one is at 1.2400. The price is finding the first resistance at 1.2600, the next one is at 1.2670.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is below the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is decreasing.
We expect the 1.2500 line break that will open the way for the sellers to 1.2400.