04, August 2016

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The dollar grew against a basket of its major peers on Wednesday. The US currency remained close to the 5-week lows as the markets are uncertain whether the Fed will hike the rate or not this year.

Current situation

The pair had a negative day on Wednesday. The EUR/USD traded in the upward channel, and approached its lower limit. The resistance is seen at 1.1200, the support stands at 1.1130.

MACD decreased which indicates the buyers’ positions weakening. The indicator shows a divergence which is a sell signal. RSI left the overvalued area and is heading downwards.

In the 4 hours chart, the instrument is moving towards the 50, 100 and 200 Day EMAs. The 50-EMA is crossing the 100-EMA and the 200-EMA. The moving averages generate a buy signal.

Trading recommendations

We expect the EUR/USD will resume its decrease and will reach the level 1.1130.