01, September 2016

EUR/USD (a 4-hour chart)

General overview

A better-than-expected US ADP survey increased the prospect of the Fed interest rate hike.

Current situation

The dollar preserved a bullish tone across the board. The pair tested fresh 3-week lows on the back of a better-than-expected ADP private employment survey. In general, the EUR/USD stays in a downward channel, advancing south. The price moved away from the 50, 100 and 200 Day EMAs in the 4 hours chart. The 50 and 100 EMAs are moving downwards, the 200-EMA is just turning down. The MACD and RSI indicators maintain bearish slopes within negative territory. The resistance is seen at 1.1200, the support stands at 1.1130.

Trading recommendations

The price stays at the support 1.1130. If the EUR/USD pair breaks below this level, then this could lead to renewed selling momentum, possibly towards 1.1070.