EUR/USD (a 4-hour chart)
The ZEW institute Germany business climate positive release shows the strong euro sellers presence. This factor confirms the negative expectations for the pair. It is now extremely dangerous to open long positions. Today on January 22 the ECB will announce the monetary policy meeting results.
The downward trend moved within a lateral corridor near the levels of 1.1650 - 1.1540. But at the same time, the trade is still towards the downward channel.
The price is finding the first support at 1.1520, the next one is at 1.1400. The price is finding the first resistance at 1.1590, the next one is at 1.1690.
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 and form a “Golden 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.
We expect the 1.1520 line break that will open the way for the sellers to 1.1400, 1.1300.