03, August 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Personal Incomes came in at 0.2% which did not coincide with the forecasts. Personal Spending showed 0.4% which met the traders’ expectations. The dollar remained under pressure across the board.

Current situation

The short term technical outlook is positive. The EUR/USD pair reached fresh post-Brexit highs. The instrument traded at the top of its ascending channel on Tuesday. The resistance is seen at 1.1270, the support stands at 1.1200.

The indicators remained within the positive territory. MACD is in the positive area. The histogram grew which indicates the buyers’ strength. RSI is in the overvalued area.

In the 4 hours chart, the instrument is heading higher above the 50, 100 and 200 Day EMAs. The moving averages are turning upwards. The 50-EMA is crossing the 100-EMA upwards and approaching the 200-EMA. The moving averages generate a buy signal.

Trading recommendations

The pair now seems to be heading towards its immediate resistance near 1.1270. We recommend buying on pullbacks.