05, October 2016

EUR/USD (a 4-hour chart)

General overview

The dollar strengthened across the board amid renewed speculation that the Fed may raise rates this year.

Current situation

The single European currency failed to regain the resistance 1.1250 and had a sharp drop below the mentioned level on Tuesday. The price fell towards 1.1150 where sellers ran out of steam, the EUR/USD pair slowed down its decline and rolled back to the 1.1170 region. The euro broke the 50, 100 and 200 EMAs downwards in the 4 hours chart. The moving averages are fallowing the price downwards. The resistance comes in at 1.1200, the support stands at 1.1150.

MACD decreased which confirms the strength of sellers. RSI is approaching the oversold area.

Trading recommendations

The price will struggle with the 1.1150 level to go further. Once we break below the current support, we think that the 1.11 level will be next. Any rebound above the level 1.1150 we consider corrective.