EUR/USD (a 4-hour chart)
The ECB left interest rates at their lowest level of 0.5%, and confirmed that this level will remain for quite a long time.
Earlier Thursday, a business survey showed that eurozone industry has increased for the first time in the last two years. In addition, the unemployment rate was reduced for the first time in two years in June.
Although the economic reports quite promising, but the actions of the ECB are complicated because of the market reaction to the plans of the U.S. Federal Reserve, on the reduction rate of the program to stimulate the economy.
The upward movement is continued as long as the price is above the Kijun-Sen.
The price broke the Cloud up. Chinkou Span is below as the result the sell signal weakened. The Kijun-Sen and Tenkan-Sen are horizontal. The Cloud keeps growing.
Bollinger Bands began expanding, the lines form a side corridor.
Histogram MACD is around zero line.
The potential for the downtrend is formed for the pair. We expect a short-term downward movement within the corridor 1.3188 – 1.3163. We consider the level 1.3038 as a potential figure for the low, after which there may be backward uptrend.
The short-term uptrend is possible within the corridor 1.3254 – 1.3289, that is why there is a possibility of reversal to the bottom.