24, May 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Manufacturing PMI in Germany rose to a five-month high in May (52.4 vs. previous 51.8, expectations 52.0). Services PMI in Germany rose to a three-month high (55.2 vs. expectations 54.6).

The first support lies at 1.1200 and then at 1.1130. The first resistance stands at 1.1250, the next one is at 1.1300.

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 horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is consolidating.

Trading recommendations

We suppose the pair will go to 1.1200 first. Having overcome the first target the price might go downwards to 1.1130.