EUR/USD (a 4-hour chart)
The German PMI industrial sector index has been showing the moderately positive trend for the last three months amid the ECB ultra-soft policy which has already started to bear its fruits. Meanwhile, the US and the Germany government bond yields have been increasing for three consecutive trading days, increasing the investments’ attractiveness into the US assets.
The price corrected upwards and broke through the resistance level of 1.1150.
The price is finding the first support at 1.1150, the next one is 1.1050. The price is finding the first resistance at 1.1260, the next one is at 1.1325.
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 and the Kijun-sen show a horizontal movement and form a “Dead Cross”. 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 suppose the pair will go to 1.1050 first. Having overcome the first target the price might go downwards to 1.0925.