03, October 2016

EUR/USD (a 4-hour chart)

General overview

The dollar fell from a weekly high despite the positive U.S economic releases. The euro weakened amid European bank problems. Particularly, investors concerned about the health of Deutsche Bank.

Current situation

 The pair jumped from 1-week low and returned back above the 1.1200 level. The level 1.1250 stopped the rally, the price rolled back and closed the day a few pips below the level. The moving averages maintained neutral tone. The resistance is seen at 1.1250, the support stands at 1.1200.

MACD indicator is at the centerline. If the histogram enters the positive territory, that will indicate buyers’ growing strength. If MACD returns into the negative area the sellers will take control over the market. RSI bounced from the oversold area.

Trading recommendations

The market switched the tone to bullish. A break above 1.1250 might force the pair to resume its upward trajectory. After breaking the level the EUR/USD pair may trend towards 1.1280.