EUR/USD (a 4-hour chart)
The European currency was sold for a dollar and even fell to new local minima. However, investors started buying euro that could push the pair to its original positions and even take a small plus. Obviously, the technical factors gave the impulse for such changes having provided the pair a strong support.
The support level 1.3360 is a serious obstacle for the downward trend continuation. This level retest led to the price rebound up to 630 points last year.
How strong the historical level is we will know after the highly volatile fundamental data release.
The price is finding the first support at 1.3360, the next one is at 1.3290. The price is finding the first resistance at 1.3420, the next one is at 1.3480.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement and form a “Dead cross”. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is decreasing.
If the fundamental factor allows sellers to break down the strong support at 1.3360 we expect the bearish trend in the medium term. The potential target will be another strong support level of 1.3110. The growth above 1.35 will weaken the bearish movement for a while.