EUR/USD: bears pulled to new lows

Tatiana Norkina, an analyst at FBS

Trading results of the last week have been quite disappointing for the bulls - the currency pair was unable to stay in the positive area. After an another bears’ attack prices have fallen under a cloud, breaking the four-hour support just above the 24th shape and reshape the technical picture.

Thus, Ichimoku cloud has changed in the nature of a bear, Tenkan and Kijun lines formed a powerful dead cross, the MACD histogram went under the zero mark, and RSI is on the bottom of the range.

At the same time, Chinkou Span is located in a strong oversold zone, which may indicate a possible corrective recovery couples to Tenkan or Kijun lines. But then we are likely to see a resumption of the downtrend.

Technical levels: support - 1.2185, 1.2000; resistance - 1.2270, 1.2310.

Trading recommendations:

1. Sell - 1.2310; SL - 1.2330; TP1 - 1.2250; TP2 - 1.2185.

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