EUR/USD (a 4-hour chart)
Janet Yellen’s speech was not a surprise for the market. Traders expected that the rates would not be changed. According to the Ifo, the market’s attitude towards the euro was negatively affected by the smaller than expected the February business sentiment index growth in Germany.
After the continuous consolidation there was a little rebound. The pair made a strong support level of 1.1300 testing.
The price is finding the first support at 1.1300, the next one is at 1.1170. The price is finding the first resistance at 1.1400, the next one is at 1.1520.
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 downward movement and the Kijun-sen shows 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 consolidating.
The approach to the level of 1.1300 may lead to a price rebound upwards. The potential rebound targets are the resistance levels of 1.1400, 1.1520.