EUR/USD (a 4-hour chart)
The Fed has sent the dollar into the knockout. The shorts global closure at forex and commodity markets indicates the US dollar corrective movement development. The United States has published the last year payments balance report for the 4th quarter. During this period the US dollar has risen by 5% in relation to its main competitors (USDX) which has a negative impact on the trade balance. Nevertheless, the dollar recovered its losses.
Buyers were able to revise the price to 1.0925. The test turned out to be short-term and was followed by the active decrease. The support levels of 1.0790 and 1.0670 were broken.
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.
The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement.
The MACD indicator is in a positive territory. The price is correcting.
The potential decrease target is the support level of 1.0550.