EUR/USD (a 4-hour chart)
The euro weakened by 0.1 % to 1.2670, before falling to nearly two-year low. The ECB meeting will take place on Thursday, after which we do not expect important news. The United States will publish an labor report on Friday, as it is expected, it will give the Fed an opportunity for the early interest rates hike.
The euro/dollar is traded in the descending channel direction where the price has been trading for the second month in a row. The support level of 1.2730 was broken down. There are no trade obstacles for bears.
The price is finding the first support at 1.2670, the next one is at 1.2600. The price is finding the first resistance at 1.2730, the next one is at 1.2790.
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 and the Kijun-sen show a downward movement. 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 trend is a directed downwards. We expect the level of 1.2600 testing soon.