EUR/USD (a 4-hour chart)
The euro has started to behave volatile after the European Central Bank (ECB) President Mario Draghi started the conference in Naples, Italy. The ECB left interest rates at the record low level, as many traders had expected. The refinancing rate was maintained at the level of 0.05% and the deposit rates remained unchanged at the level with minus of 0.2%.
The euro sharply fell at the end of the trades. Earlier the trades were within the EUR/USD upward correction. Bulls have raised the price on the high volume, bringing it closer to the strong resistance level of 1.2740. The pair fell to a new low at the support level of 1. 2500.
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 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 decreasing.
We believe the decrease will be continued now. The first target is the level 1.2400.