01, July 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

In economic news, a preliminary Consumer Price Index in the Euro zone unexpectedly rose in June. The release decreased investors' concerns about the threat of deflation in the region. The growth of the prices was positive news for the European Central Bank (ECB) which plans to reach the target inflation rate of 2%. Mark Carney’s speech supported the dollar yesterday.

Current situation

Technically, the main trend is down, the pair remained in a descending channel. All attempts to break through 1.1130 failed. The level 1.1130 and the 50-day moving average limited a growth of the instrument. The Moving Averages (50, 100 and 200) are moving downwards, that is a sell signal for now. The resistance stands at 1.1130, the support lies in at 1.1000.

MACD remained in the negative area, its histogram decreased, that is a sell signal. RSI is in the neutral area; the indicator turned down to the oversold area.

Trading recommendations

The potential decrease targets are two levels of support: 1.0900, 1.0830.