05, August 2016

EUR/USD (a 4-hour chart)

 EUR/USD (a 4-hour chart)

General overview

The euro has been decreasing the second day in a line. The single currency weakened amid the growing dollar. The Eurozone Economic Bulletin did not present any interesting information. The investors’ attention now turns to the US nonfarm payrolls report which will be released later today.

Current situation

The dollar traded mixed on Thursday, generally higher against the euro. The pair remained in a negative ground. The resistance is seen at 1.1200, the support stands at 1.1130.

MACD shows a divergence which is a sell signal. RSI left the overvalued area and is heading downwards.

In the 4 hours chart, the instrument bounced from the 50-EMA which crosses the 100 and 200 EMAs. The moving averages are neutral.

Trading recommendations

If the price makes another attempt and this time breaks below the 1.1130 support area then we could see a decrease towards 1.1050 and 1.1000.