EUR/USD (a 4-hour chart)
Last Friday, the European currency reached the key resistance level 1.3120 against the dollar, but failed to break through it and after bouncing from the level went down.
The pair fell yesterday to the level 1.3040 where it began consolidation showing a lateral movement.
The euro is likely to trade at 1.3080 - 1.3000. It is possible to fall to 1.2950.
The price is below the Tenkan-Sen and Kijun-Sen and the pair is traded in the Cloud. The Tenkan-Sen is below the Kijun-Sen. The Tenkan-Sen and the Kijun-Sen are directed sideways. The direction of the Cloud is neutral.
The EUR/USD has reached the top of the Cloud 1.3080 it is likely to be repelled and will continue to go down to the bottom of Cloud, which coincides with the key support level 1.2940.
Bollinger lines are narrowing.
MACD histogram fell to the negative zone and is being traded parallel to a zero line.
We believe that in the nearest future the pair will fall to the level 1.2900 (1.2850). U.S. GDP data may add pressure on the pair as they are expected to be positive, indicating the stability of the U.S. economy. Soon the pair can reach the key support level 1.2800.
We recommend to place sell orders with take-profit at 1.2900.
If the pair resumes a growth, the first target will be the level 1.3090.
Place a stop loss above the Kijun-Sen in the case of a southern movement and below the Kijun-Sen, in the case of a north one, respectively. As the price moves we move and stop level after it.
When you open positions consider the fundamental analysis and the time economical news is released.