EUR/USD (a 4-hour chart)
Euro has been continuing growth for the third day in a roll. German CPI fell in October to its lowest level since April, confirming the preliminary estimates. The representative of the ECB Asmussen said on Tuesday that there may be further action towards interest rates, they will depend on inflation - and he did not exclude the possibility of deposits interest rates lowering.
The pair continued its recovery. This opens the way for further short-term recovery in the direction of 1.3560. We believe the pair will not go further that level and we expect a trend reversal down and 1.3230 or support at 1.3100 retest.
The pair is in a bullish trend. Chinkou Span is above the price, and the price is fixed below the Ichimoku cloud, the sell signal is weak and confirmed as the pair is being corrected upwards. Tenkan-Sen and Kijun-sen are following the pair up, Kijun-sen is horizontal, Tenkan-Sen is directed upwards. The Cloud is directed down.
The downward movement remains as long as the Kijun-sen is located above the price.
Bollinger Bands show a movement change. The bands are turning up.
The MACD histogram is in a negative area, its volumes are reducing.
The price is moving to the strong support level 1.35, from where it is likely to bounce down to 1.3320.