03, June 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The ECB meeting was the main event in the Eurozone this week. The European regulator left the rate unchanged. The ECB meeting results weakened the euro, at the same time the strong unemployment statistics in the USA supported the dollar. As the result the pair EUR/USD fell.

Current situation

The euro fell on Thursday due to the macroeconomic statistics in Europe and the United States. The pair could not hold at the level of 1.1200, and dropped down. The level of 1.1155 became the local minimum of the day. We believe that sellers are back and they will take the pair further down. The resistance is at 1.1200, the support is at 1.1130.

MACD is in a positive area, close to the zero line. The histogram is on the level of the signal line. MACD kept decreasing showing a sell signal. RSI approached the oversold level of 30.

Trading recommendations

The downward movement will be continued. The pair may go to 1.1130 soon. The next target will be le level of 1.1070.