EUR/USD (a 4-hour chart)
The IFO institute published the Germany business climate report. Investors waited it within the consensus-forecast to 108.0. In fact the figure rose up to 108.5 against 108.4. Now the debt market dynamics is against the euro bulls: the German 10-year government bond yields are declining in relation to their US and UK counterparts which reduces the investments’ attractiveness into the European assets.
The price continued to correct and now it tested the level of 1.1260.
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 shows a horizontal movement and the Kijun-sen shows a downward 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.
The potential decrease targets are two levels of support: 1.1150 and 1.1050.