01, August 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The euro strengthened against the dollar after better-than-expected Eurozone GDP data. The Fed hawkish announcements without any clues over the date of a possible rate hike weighed the dollar as well.

Current situation

The pair had a positive day on Friday. The instrument jumped to its highest mark and set a new 5-week high around the 1.1200 level. The euro gained about 0.80% during the course of the day. The resistance is seen at 1.1200, the support stands at 1.1130.

According to the indicators bulls have the ball now. MACD is in the positive area. The histogram grew which indicates the buyers’ strength. RSI entered the overbought level.

The 4 hours chart shows that the price broke the 200-EMA which was its last obstacle on its way up. Now the price is heading higher in the 1.1200 region.

Trading recommendations

The market looks like it could pull back a little. The price might return to the 1.1100 region (200-EMA ) where we recommend to buy. In this scenario, the levels 1.1130 and 1.1200 are the possible targets.