EUR/USD (a 4-hour chart)
EU data chained many investors’ attention. We expect that with its help we will predict future market direction. If the data comes in better than expected, the demand for the single European currency is likely to resume. Still there are risks that the data will be in the dollar’s favor.
The first support lies at 1.1050 and then at 1.0925. The first resistance stands at 1.1150, the next one is at 1.1260.
There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show 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.
We believe the decrease will be continued. The first target is the level 1.0925, the next one is 1.0800.