EUR/USD (a 4-hour chart)
The FOMC again pointed out to the weak export, the number of new jobs decline and the low inflationary expectations. However, the US currency showed a powerful growth the previous day. Traders again continued to win back the divergence after a pause, waiting for the Federal Reserve and the ECB central banks actions.
The first support is at the level of 1.0925, the next one is at 1.0870. The resistance levels are 1.1050 and 1.1150.
We have a strong and confirmed sell signal. The price is below the Ichimoku Cloud. The pair is under the Chinkou Span. The Tenkan-sen is crossing Kijun-sen downwards; two lines are forming the “Dead Cross”. The pair will show the southern movement until it is below the Cloud.
The MACD indicator is in a negative territory. The histogram is growing.
The resistance – 1.1050 is our first growth target. We expect the pair to keep falling. The targets are 1.0925 and 1.0870.