EUR/USD (a 4-hour chart)
The euro fell sharply at yesterday's trading. The attitude towards the euro was changed last week - buyers started to buy the European currency and at the end of the Friday it strengthened against the dollar and other majors. Obviously, the euro overbought reached the level that prompted investors to the correction, all the more that the US statistics gave rise to the emotional reaction against the dollar, showing the October work places increase data worse than it had been forecasted.
We observe the upper bound testing of the downtrend channel at the level of 1.2500. The price exit from the channel limits opens the way to the resistance level of 1.2500 in the long term.
The price is finding the first support at 1.2400, the next one is at 1.2300. The price is finding the first resistance at 1.2500, the next one is at 1.2600.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is below 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 falling.
We suppose the pair will go to 1.2400 first. Having overcome the first target the price might go downwards to 1.2300.