EUR/USD (a 4-hour chart)
Monday was not rich with important macroeconomic statistics. It is necessary to pay attention to the Germany industrial production report.
There was the German industry volume orders increase by 2.5% in October that points out to the positive manufacturing sector data output. In the light of this, the European single currency can get some support, but we cannot on the strong demand.
After a short-term quotations growth traders will open short positions.
The price is finding the first support at 1.2300, the next one is at 1.2200. The price is finding the first resistance at 1.2400, the next one is at 1.2500.
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.
The approach to the resistance level of 1.2400 may lead to a price rebound down. The potential rebound target is the support level of 1.2200.