EUR/USD (a 4-hour chart)
The euro area inflationary pressure has been practically absent from the year beginning and the further oil market sales will have deflationary impact on the economy. In addition, the US and Germany government bond yields are increasing that points out to the investments attractiveness in the US assets.
The price continues the price correction. The price is trading above the level of 1.1150.
The price is finding the first support at 1.1150, the next one is 1.1050. The price is finding the first resistance at 1.1260, the next one is at 1.1325.
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.
We recommend going short with the first target – 1.1050. When the price consolidates below the first target it may go to the level 1.0925.