EUR/USD (a 4-hour chart)
Yesterday the German and the US negative government bond yields increased by 6 basis points. In addition, there was the second quarter US GDP second assessment published which was expected within the forecasted medians. As well as the number of jobless claims weekly report that was expected 274K against the previous 277K. the data came out at the level of 271K.
The euro sharp growth against the dollar was replaced by the no less sharp downward correction. The signal for the correction continuation served the levels of 1.1420 and 1.1260 breakthrough.
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 1.1420.
There is a confirmed and a weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a negative territory. The price is decreasing.
The downward movement potential targets are 1.1150 and 1.1050. If the price grows it will get to 1.1420.