EUR/USD (a 4-hour chart)
The traders are interested in only one question – whether the monetary authorities will increase the incentives? The Eurozone Composite PMI index fell in November to its lowest level since August 2013 that points out to a weak economic growth in the current quarter. The leading economies as Germany and France demonstrate weakness and will not be able to rebuild the economic bloc by themselves. The euro area inflation expectations are still low and there will be no factors for their strengthening in the short term.
The price is finding the first support at 1.2300, the next one is at 1.2200. The price is finding the first resistance at 1.2400, the next one is at 1.2500.
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 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 correcting.
The downward movement will be continued. The pair may go to 1.2200 soon.