EUR/USD (a 4-hour chart)
The US ISM manufacturing index has been showing decline for four consecutive months, indicating the industrial production slowdown. Mark that the ISM manufacturing sector employment component fell to its lowest level in February since April 2014.
The euro has been actively updating the price lows the third week in a row. The price decrease was followed with the increased volumes. The pair slightly grew and broke through the resistance level of 1.0550.
The price is finding the first support at 1.0550, the next one is at 1.0420. The price is finding the first resistance at 1.0670 the next one is at 1.0790.
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 shows a horizontal movement and the Kijun-sen shows a downward 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 downward movement will be continued amid the Chief of the ECB M. Draghi’s speach. The pair may go to 1.0420 and 1.0280 soon.