05, September 2016

EUR/USD (a 4-hour chart)

General overview

The dollar weakened after U.S payrolls report. Non Farm Payrolls slowed down in August and the Fed may postpone the rate hike due to the weak labour market report.

Current situation

The pair showed volatile trades on Friday. The euro suffered an increased buying pressure right after the Non-farm Payrolls release. Buyers pushed the price from the mark 1.1190 towards the resistance 1.1270 where the euro bullish spike faded and the pair dropped back to the opening price level. The pair closed bearish on Friday. The resistance is seen at 1.1200, the support stands at 1.1130.

The EUR/USD pair is below 50, 100 and 200 EMAs which are moving downwards in the 4 hours chart. The moving averages generate a sell signal.

The MACD remained at the same level which confirms the strength of sellers. RSI is approaching the negative territory.

Trading recommendations

The pair looks increasingly bearish now. A move below 1.1130 will strengthen sellers’ positions. If the EUR/USD consolidates over 1.1270 the upward movement may continue towards 1.1350.