EUR/USD (a 4-hour chart)
The euro continues to fall versus the dollar. The dollar was supported by a good March labor report. Still the main driver of the last fall was the European Central Bank leaders’ interventions when they declared the need to continue the softening policy.
We expect the euro corrective decline versus the U.S. dollar from the resistance level 1.3760 in the medium term. The bounce down led to the descending channel creation where the price is now.
The support is at 1.3700. The resistance is at 1.3750.
There is a strong southern movement. The price is below the Cloud and above the Chinkou Span. The downward movement will be until the Kijun-Sen is below the price. The Tenkan-Sen is crossing the Kijun-Sen down forming a “Dead Cross”. That is a good sell signal.
MACD histogram is still in negative zone slightly growing.
The indicators show a downward movement. The first target is 1.3700. If the price reaches the first target it will move to 1.3670.