06, September 2016

EUR/USD (a 4-hour chart)

General overview

The EUR/USD strengthened on the back of the weak dollar after disappointing Non Farm Payroll report. The USA market was closed due to Labour Day.

Current situation

The pair was low volatile on Monday. The euro moved upwards in the Asian session. Then sellers were able to push the price lower in the European and North American sessions. The price remained below the 50, 100 and 200 EMAs in the 4 hours chart. All moving averages kept heading lower. The resistance is seen at 1.1200, the support stands at 1.1130.

MACD shows divergence in the 1 hour chart. RSI is heading towards the oversold area.

Trading recommendations

If the downward pressure persists the pair will get below 1.1130. In this scenario, sellers’ next target will be the mark 1.1070.