EUR/USD (a 4-hour chart)
The euro held the Tuesday trading in the narrow side corridor and at the end of the session rose against the dollar. Earlier the euro fell amid the European news as the US news was lack of important information and the euro was under pressure due to the last events – the less strong US labor report as well as the medium-level sentiment, preserving the dollar demand.
The resistance level short term test of 1.2500 was followed by the price rebound downwards. The US dollar continued to strengthen against the euro amid the low volumes. The rebound from the resistance level of 1.2500 has led to the descending channel formation. The price decreased to the level of 1.2400. The buyers again corrected the price to the level of 1.2500.
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 and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.
The MACD is in a negative territory. The price is correcting.
The downward movement will be continued. The pair may go to 1.2400 soon.