EUR/USD (a 4-hour chart)
The ECB lowered the rates as the result the European currency showed mixed volatility against the dollar and closed the day with losses yesterday, but within the formed range. The frustration on the single currency was provoked and by the weak activity estimate in the service sector and the Eurozone as a whole unit. The managers' index (PMI) for the service sector in Germany was revised down to 56.0 from 56.4
Almost weekly trading was in a side corridor between the levels 1.3645 - 1.3590. On the one hand bearish trend remains in force since downward channel upper bound 1.3630 has not been broken. And on the other side the five-day consolidation at support level 1.3590 is a good chance to change the current trend model.
There is a confirmed and strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The downtrend movement will be until the price is under the Kijun-Sen. The Kijun-Sen is directed horizontally. The Cloud is descending.
The price is finding the first support at 1.3570, the next one is at 1.3520. The price is finding the first resistance at 1.3670, the next one is at 1.3710.
The MACD indicator is in negative territory. The histogram is close to the zero level.
If buyers can break above the resistance level 1.3645, in the longer term we will expect growth to 1.3690, 1.3725 marks.
If the bears take the control over the market we will see the bearish movement continuation towards 1.3500.