02, September 2016

EUR/USD (a 4-hour chart)

General overview

A weaker-than-expected U.S. Manufacturing PMI weighed on the dollar and supported the euro.

Current situation

In the short term our outlook is bullish. The dollar was in a flat ahead of the U.S statistics. The pair traded in a range between the support 1.1130 and the level 1.1160. After a weak Manufacturing PMI the price rallied and approached the mark 1.1200. The resistance is seen at 1.1200, the support stands at 1.1130.

The EUR/USD pair is under 50, 100 and 200 EMAs which are moving downwards in the 4 hours chart. The 50-EMA is crossing the 100-EMA in the mentioned timeframe. The moving averages generate a sell signal.

MACD shows a bullish divergence in the 1 hour timeframe. The RSI indicator headed towards the overbought area.

Trading recommendations

Technically the EUR/USD may reverse and grow towards 1.1200 and 1.1270. Otherwise, the instrument will continue falling with a target at 1.1070.