EUR/USD (a 4-hour chart)
The correctional movement within the single European currency is coming to its logical conclusion and tomorrow when the United States will publish the retail sales release for November, we can expect the demand for the US dollar. The bond market dynamics also is showing a neutral background.
There was a downward trend line short-term testing of 1.2400 amid the increased volume. The trend testing was followed by the impulse price rebound downwards.
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 non-confirmed and a weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement and form a “Golden Cross”. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a positive territory. The price is increasing.
The approach to the level of 1.2500 may lead to a price rebound down. The potential rebound targets are the support levels of 1.2400, 1.2300.