EUR/USD (a 4-hour chart)
The euro ignored positive news background which indicates the strong sellers presence. The Markit Economics published the Germany production and non-production sphere PMI report. The releases were expected with a positive data, however the data showed a decrease in these sphere. Traders expected the moderately positive data from the institute IFO. The United States published the final Q1 GDP data. It reduced to 0.2%.
The level of 1.1290 breakthrough was accompanied by an active euro fall against the US dollar. The price has fallen more than 200 points and broke through all the closest supports.
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 1.1450.
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 showы 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 1.1150 may lead to a price rebound upwards. The potential rebound targets are the resistance levels of 1.1260, 1.1450.