EUR/USD (a 4-hour chart)
The sentiment related with the ECB and the Fed multi-directional policy continued to help the US dollar to keep the leadership. The European statistics has not published important news, the September construction volume data did not change the market sentiment. After M. Draghi unequivocal sayings about the intention to increase the monetary policy easing, the ECB representatives' statements were ignored.
The pair shows a consolidation above the support level of 1.0630 after its reduction and this level testing.
The price is finding the first support at 1.0630, the next one is 1.0550. The price is finding the first resistance at 1.0730, the next one is at 1.0800.
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 and the Kijun-sen show a downward movement and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is consolidating.
If the price fixates below the support 1.0630, it may continue the downward trend in the short term. The potential target is 1.0550.