EUR/USD (a 4-hour chart)
The dollar kept growing against a basket of its major peers following the negative Manufacturing PMI for July.
The EUR/USD is in a narrow range at the beginning of the week. The pair traded in an upward channel. The euro slightly retreated from the 5-week high set last Friday. The resistance is seen at 1.1200, the support stands at 1.1130.
MACD is in the positive area. MACD decreased which indicates the buyers’ positions weakening. The indicator still gives a buy signal. RSI is in the overvalued area. Indicators generate a buy signal.
In the 4 hours chart, the instrument is hovering above the 50, 100 and 200 Day EMAs. The moving averages are turning upwards. The 50-EMA is crossing the 100-EMA upwards. The moving averages generate a buy signal.
We do not exclude a light euro correction to the 1.1100 region where we expect a turn over and a further increase. The buyers’ targets are 1.1200 and 1.1270.