EUR/USD (a 4-hour chart)
The October meeting “minutes” from the Fed Open Market Committee allowed the EUR/USD to achieve the high volatility. The roller coaster returned the major pair quotes back in the initial state and investors were forced to focus their attention to the European business activity and the US inflation data release.
There was a false downward trend line of 1.2600 retest. The buyers have updated the previous local maximum, but they failed to consolidate above the trend line. The pair is consolidating above the resistance level of 1.2500.
The price is finding the first support at 1.2500, the next one is at 1.2400. The price is finding the first resistance at 1.2600, the next one is at 1.2670.
There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement. The upward movement will be until the price is under the Cloud.
The MACD indicator is in a positive territory. The price is consolidating.
We expect the 1.2500 line break that will open the way to the level of 1.2400.