EUR/USD (a 4-hour chart)
EUR/USD is currently under pressure, feeling the negative effects of the break below 1.2955. The break provoked active speculative long positions liquidation.
Bulls can count on bids near 1.2935/25 and around 1.2905/00, however, breaking the feet of around 1.2890 threatens to shift the focus to the levels 1.2840/20. Large offers concentrate near 1.2960.
The price is trading upper than Chinkou-span, we have a weak buy signal as EURUSD is trading in the Ichimoku cloud. The pair is above the Kijun and Tenkan, the Ichimoku cloud has a down trend formation.
Kijun-Sen and Tenkan-sen formed a "dead cross". Kijun-sen is moving horizontally and the Tenkan-Sen is directed down.
Bollinger bands indicator has formed an upward channel.
MACD returned to the growth. Should the indicator turn down it will signal a resumption of a falling, if up a resumption of a growing.
At the end of the last week the pair got 18000 contracts which were mostly bullish. The Asian session just confirmed that. However, there is not large volumes that could impact the downtrend that began at very high volumes on May 2-3.
We recommend staying out of the market, buying from the current levels. Trading in the cloud indicates the uncertain of the market.